Shutterfly: Cowen Sees a Blurry Picture

Shutterfly (SFLY) shares are down sharply today after Cowen’s Jim Friedland started coverage of the online photo services company with a Neutral rating. Friedland writes that he sees 17 percent compounded growth over the next five years, but that he expects the company “to continue to experience lower demand and returns in the near-term.” Friedland sees the company hurt by the weak macro economy, growing price competition and increasing R&D spending to develop new printing products, design features and a photo-sharing service.

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