Topeka Capital analyst Victor Anthony weighed in on the possibility of a sale, “We have stated in past notes that SFLY is an attractive acquisition candidate... With that said, we thought a sale of the company was a longer-term exit strategy for CEO Jeff Housenbold, so we are surprised by the timing.”
Amazon is a logical buyer because the companies are in the same space.
Anthony thinks that a takeover would be worth about $70 per share. A $58 price target was derived with a DCF, but a 20 percent takeover premium takes the price to $70.
Shares were last trading at $50.50, meaning another 20 percent of upside remains in the stock, according to Topeka, if Shutterfly is acquired.
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