Shutterfly Receives a Buy from Axiom

By George MacDonald

Axiom analyst Victor Anthony reiterated a Buy rating on Shutterfly (NASDAQ: SFLY) on May 28 and set a price target of $54. The company’s shares closed last Friday at $46.50.

Anthony said, “We hoped Shutterfly would have resolved its differences with the activist investor Marathon Partners prior to the shareholder meeting on June 12. Based on the contents of yesterday’s presentation, Shutterfly made extended efforts (Board seats, compensation changes) to do so, but they were rejected. A win by the activist investor of all three Board seats would invoke risk to management retention, in our view. SFLY’s CEO has received “inbound solicitations”. Perhaps there is still time for a resolution. SFLY continued acquisition talks with potential acquirers between January and April of this year and remains open to discussions with acquirers. We maintain our Buy rating. We still see a case for sustained mid-teens Consumer growth and expect to see margin expansion late in 2015 and 2016.”

Shutterfly has an analyst consensus of Strong Buy, with a price target consensus of $55.

The company has a one year high of $54.79 and a one year low of $38.95. Currently, Shutterfly has an average volume of 441.7k.

According to TipRanks, Anthony is a 5-star analyst with an average return of 16.3% and a 65.7% success rate. Anthony covers the Technology sector, focusing on stocks such as IAC/InterActiveCorp, Bankrate Inc., and Alibaba Group.

Shutterfly Inc manufacturers and digitally retails personalized products and services offered through a family of lifestyle brands.