- Truist Securities analyst Youssef Squali maintains Shutterstock Inc SSTK with a Buy rating and raises the price target from $86 to $88.
- The analyst remains constructive on SSTK following more robust than expected 1Q23 results and guidance raise for FY23.
- SSTK is benefiting from strength in Enterprise, up 35% Y/Y FXN fueled by demand for Studios and growing contributions from existing and new AI partnerships, which should grow over 50% Y/Y in FY23.
- The management announced two new long-term deals and a robust pipeline.
- SSTK continues transforming itself from a marketplace for stock imagery to an AI-powered creative content and workflow platform with compelling growth and margin prospects, valuation, and sound capital allocation.
- Needham analyst Bernie McTernan reiterates Shutterstock with a Buy rating and maintains a $90 price target.
- Given the big 1Q beat and only modest raise to FY23 guidance, the analyst believes it sets an achievable bar for the remainder of the year.
- On AI, SSTK signed two partnerships in the quarter, noting market pricing for Computer Vision is consistent with the $5 million - $10 million communicated at the recent investor day.
- The analyst believes management expressed increased conviction in the breadth of companies needing AI models, which he believes will be a tailwind for SSTK and a key reason to own shares.
- Price Action: SSTK shares are trading lower by 5.92% at $65.33 on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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