Muted Near-Term Impact
Analyst Victor Anthony believes the near-term impact of Amazon Prints on Shutterfly's revenues and profits, particularly for the key fourth-quarter holiday season, will be muted.
Solid Q3
Axiom noted that the company's third-quarter revenues and adjusted EBITDA beat its estimates, with core Shutterfly brand growing in double-digits and gross margins at consumer and enterprises expanding.
Outlook
Shutterfly's fourth-quarter revenue and adjusted EBITDA outlook surrounded the consensus estimates, the firm noted.Valuation Cheap
With shares trading at a low 6.3 times its 2017 adjusted EBITDA estimate and a roughly 10 percent free cash flow yield, Axiom sees the stock's valuation as cheap. This, according to the firm, is despite all elements making for a compelling investment, such as strong management, market leadership, growing cash flow, capital returns, clean accounting and an undemanding valuation, present.
As such, Axiom upgraded the shares of Shutterfly to a Buy from Hold, while it maintained its $52 price target.
At last check, shares of Shutterfly were up 10.53 percent at $46.50.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.