Topeka Maintains Buy On Shutterfly As It Seeks Potential Buyers
In a research note published yesterday, Topeka Capital analyst Victor Anthony maintained a Buy rating on Shutterfly Inc. (SFLY) with a price target of $58.00, following reports that SFLY hired boutique investment bank Qatalyst Partners to find buyers.
Anthony wrote, “Based on yesterday’s closing price of $43.51, SFLY was trading at 7.3x the consensus 2015 EV/EBITDA vs. a median multiple of 10x for the group of e-commerce stocks. At 10x 2015 consensus EBITDA, SFLY shares would be worth $60 per share, or a 38% premium to yesterday’s price. However, we think the stock is worth $58 per share based on a DCF valuation. A typical 20% premium would value the stock in an acquisition at $70 per share, or 12x 2015 consensus EV/EBITDA. The true value in an acquisition may lie somewhere between $60-$70 per share”.
According to TipRanks, which measures analysts and bloggers success rate based on how their calls perform analyst Victor Anthony currently has a one-year average return of 20.2% and a 72% success rate. Anthony has a -4.4% average return when recommending SFLY, and is ranked #70 out of 3154 analysts.