In a report released today, Bernie McTernan from Needham reiterated a Buy rating on Shutterstock (SSTK – Research Report), with a price target of $30.00.
Bernie McTernan has given his Buy rating due to a combination of factors including the current valuation of Shutterstock’s stock and the potential for future growth. Despite lowering the price target to $30, McTernan sees the stock as undervalued, trading at a significant discount compared to pre-acquisition announcement multiples.
Although there are challenges with organic content trends, which have led to adjustments in earnings estimates and target multiples, the long-term outlook remains positive. McTernan believes that the discounted trading price presents an opportunity for investors, as the stock is expected to recover and align with its intrinsic value over time.
According to TipRanks, McTernan is a 4-star analyst with an average return of 2.8% and a 47.81% success rate. McTernan covers the Consumer Cyclical sector, focusing on stocks such as DraftKings, Super Group (SGHC), and thredUP.