Jefferies Lowers PT on Shutterfly to $40

Jefferies & Company has lowered the price target on Shutterfly

from $65 to $40 and maintains its Buy rating after the company reported lowered 4Q11 guidance this morning. In the report, Jefferies writes, "Not surprisingly, SFLY this morning preannounced 4Q results to the downside, following several references by management at investor conferences, to heightened promotional activity this holiday season. Snapfish, a division of Hewlett Packard, with its 1c/print (which ran for several weeks) and "buy one/get 2 free" on photobooks, and others like Cardstore.com (American Greetings) created a very promotional environment in which Shutterfly needed to compete." Jefferies maintains its Buy rating on Shutterfly, which is currently trading down $1.31 from yesterday's $25.10 closing price.