Raymond James analyst Aaron Kessler upgraded shares of Shutterfly Inc. to outperform from market perform on Friday, following better-than-expected results from the company, which lets users make personalized gifts out of their photos. "While there have been concerns around slowing or even declining Shutterfly consumer revenues, we believe Shutterfly brand core growth has been relatively stable," Kessler wrote. "We believe a big part of the 2H18 slowdown and investor concern was related to a shift away from low ROI free orders (started in 2Q18)." He expects that the company's comparisons to year-ago metrics will start to look better in the second quarter of 2019 as Shutterfly laps the change in its free-order strategy. Shares are up 6% in premarket trading. They've gained 5% so far this year, as the S&P 500 has risen 17%.