SunTrust Robinson Thinks Shutterfly’s Stock is Going to Recover

SunTrust Robinson analyst Youssef Squali maintained a Buy rating on Shutterfly (SFLYResearch Report) today and set a price target of $55. The company’s shares opened today at $38.29, close to its 52-week low of $35.08.

Squali said:

“We expect revenue from core Y/Y), consolidated revenue of $323.9M, and Adj EBITDA of $(45.4M) in line with consensus of $148M/$323M/$(45M) and within the range of management’s guided range of $146-150M/ $317-328M/$(43)-(48M). We believe a sale still makes the most sense, but stock’s behavior says otherwise. One of the reasons we remain at Buy on SFLY is 1) we believe that a sale still makes the most sense at this point, and 2) there is material upside potential in the scenario of a sale (see table below). We also believe current CEO Chris North is financially motivated to sell the business before he leaves later this year.”

According to TipRanks.com, Squali is a top 100 analyst with an average return of 22.6% and a 70.5% success rate. Squali covers the Technology sector, focusing on stocks such as Match Group Inc, Trade Desk Inc, and Cardlytics Inc.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Shutterfly with a $50.83 average price target.

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Based on Shutterfly’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $178 million. In comparison, last year the company had a GAAP net loss of $27.17 million.

Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is negative on the stock.

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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).