Shutterstock: The Less Know Stock With Strong Momentum
Shutterstock (NYSE: SSTK) share price has outperformed the broader market index last year and the shares are accelerating the gains since the beginning of this year, driven by trader’s confidence in revenue growth and earnings surprises. Moreover, bullish forecasts for the small-cap valued at $3.2 billion are adding to investor’s sentiments.
The latest upside momentum is supported by revenue and earnings beat for the fourth quarter. The company has posted fourth-quarter revenue of $180 million, up 9% from the year-ago period, and topped analysts’ consensus estimate by $6.94 million.
On top, the market analysts applauded the big earnings growth surprise. Its adjusted EBITDA rose 101% year over year while earnings per share of $0.93 topped consensus estimates by a healthy $0.35 per share.
CEO Stan Pavlovsky said:
Shutterstock had an exceptionally strong finish to 2020, with revenue growth acceleration across all geographies and channels, including a return to growth in our Enterprise channel. The momentum we have exhibited in evolving our business towards a subscription model is encouraging and I believe we are well-positioned heading into 2021.”
Analysts Raised Shutterstock Price Target
The market analysts are optimistic that Shutterstock will extend its upside momentum in 2021 despite a massive 90% run in the past twelve months.
Needham has provided a Buy rating with a price target of $95, admiring EBITDA surprise and sooner than expected inflection in enterprise revenue, which could show that guidance was conservative. Needham analyst Chris Pierce believes recent acquisitions would further enhance its revenue base and market share in the days ahead.
JMP Securities set a price target at $100, representing a significant upside from the current level of $85 a share. The firm says the revenue and EBITDA surprises, strong enterprise revenue, and accelerating subscriber numbers would support share price gains.