BTIG maintains Buy on Shutterfly, sees CoreWeave IPO as key

On Wednesday, BTIG analysts upheld their Buy rating and $7.00 price target for Shutterfly stock (NASDAQ:SSSS), currently trading at $5.27, emphasizing the potential uplift from portfolio company CoreWeave’s upcoming public offering. According to InvestingPro data, analyst consensus remains strongly bullish with price targets ranging from $6.50 to $8.70. Shutterfly’s Net Asset Value (NAV) per share was reported at $6.68 for the fourth quarter of 2024, a slight 1% decrease from the $6.73 NAV per share in the third quarter of 2024. The year-end NAV was considered outdated by the analysts, given recent positive developments, notably CoreWeave’s decision to go public and its agreement with OpenAI to provide $11.9 billion in services over the next five years. InvestingPro metrics show the company maintains strong liquidity with a current ratio of 12.9x, indicating robust financial flexibility to support its portfolio investments.

CoreWeave, which is targeting a valuation greater than $35 billion for its initial public offering (IPO), represents a significant investment for Shutterfly, with an estimated cost basis of around $20 billion. The analysts also mentioned other positive trends within Shutterfly’s portfolio, as discussed in their previous research note. Despite a markdown of approximately 19% for Learneo compared to the third quarter of 2024, the analysts believe its substantial cash balance limits further risk to Shutterfly’s NAV. Meanwhile, Blink Health saw a 13% quarterly markdown, whereas WHOOP enjoyed an 8% increase and became the fifth largest holding in Shutterfly’s portfolio.

The focus for Shutterfly, according to BTIG, should be on the next six to nine months, as CoreWeave is expected to start trading, OpenAI may close a new funding round, and other portfolio holdings might go public, as suggested by Shutterfly’s management. Despite recent market fluctuations, BTIG remains confident in the undervalued status of Shutterfly’s shares, which currently trade at a 21% discount to the reported NAV for the fourth quarter of 2024. InvestingPro analysis reveals the stock has shown significant price volatility, with a 37.6% gain over the past six months despite recent pullbacks. For deeper insights into Shutterfly’s valuation and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 8 additional ProTips and extensive financial metrics.

In other recent news, SuRo Capital Corp reported its fourth-quarter 2024 earnings, revealing a 16% decline in Net Asset Value (NAV) to $157.6 million or $6.68 per share. Despite this decline, the company emphasized its strategic investments in AI infrastructure, which now constitute 28% of its portfolio, and the anticipated initial public offerings (IPOs) of several companies, including CoreWeave and Canva. SuRo Capital’s liquid assets stood at $23.6 million, representing 10% of its gross assets. The company experienced a net investment loss of $0.16 per share but realized portfolio gains of $0.39 per share. Additionally, SuRo Capital made notable follow-on investments, such as $5 million in CoreWeave’s Series A preferred shares. The outlook for the company is bolstered by its AI infrastructure focus and potential future IPOs, with CEO Mark Klein expressing confidence in the company’s capital structure and investment strategy. SuRo Capital’s recent earnings call highlighted its commitment to high-growth sectors and the promising future of its portfolio companies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.