Aegis Capital Sticks to Their Buy Rating for Shutterfly (SFLY)

In a report released yesterday, Victor Anthony from Aegis Capital maintained a Buy rating on Shutterfly (SFLYResearch Report), with a price target of $57. The company’s shares closed yesterday at $50.72.

Anthony noted:

“We have all along advised investors to buy the stock for an eventual takeout but are surprised by the deal multiple, which we view as low, given that SFLY’s shares have traded at an average forward EV/EBITDA multiple of 8x, and a max of 10.5x, over the past year (hence no premium). Moreover, and importantly, following 1Q results, it was clear to investors that the business had regained its footing with steadier performance at the core Consumer business, the LifeTouch integration remained on track with $25M of LifeTouch revenue synergies expected to be realized in 2H19, and SBS had new customer wins. Lastly, there are certainly cost synergies with combining in addition to a lessening of the promotional environment that we believe shareholders are not being compensated for at the stated deal price.”

According to TipRanks.com, Anthony is a top 100 analyst with an average return of 15.7% and a 65.7% success rate. Anthony covers the Technology sector, focusing on stocks such as ANGI Homeservices Inc, IAC/InterActiveCorp, and The Meet Group Inc.

Currently, the analyst consensus on Shutterfly is a Hold with an average price target of $53.

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The company has a one-year high of $98.50 and a one-year low of $35.08. Currently, Shutterfly has an average volume of 1.01M.

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Shutterfly, Inc. engages in the provision of retailer and manufacturing platform of personalized products and communications. It operates through the following business segments: Shutterfly Consumer, Lifetouch, and Shutterfly Business Solutions (SBS).