Buy Rating for Shutterstock: Attractive Valuation Amidst Conservative Estimates and Strategic Synergies

Bernie McTernan, an analyst from Needham, reiterated the Buy rating on Shutterstock (SSTK – Research Report). The associated price target was lowered to $25.00.

Bernie McTernan has given his Buy rating due to a combination of factors including the updated estimates following Shutterstock’s first quarter earnings results. Although the price target has been adjusted to $25 due to more conservative medium-term estimates and target multiples, the valuation remains attractive.
McTernan notes that the company’s organic content business trajectory is a focal point for investors, with year-over-year declines estimated to be roughly flat, despite some uncertainty due to contributions from mergers and acquisitions. The valuation of the pro forma company, which includes Getty Images, is considered cheap, trading at 5.3 times the estimated 2025 pro forma adjusted EBITDA without synergies, or 4.8 times with 40% synergies. The pro forma company is expected to benefit from reduced exposure to the legacy Shutterstock e-commerce business and substantial synergies.