Wunderlich's 3 Key Takeaways From Shutterstock's Report

After reporting fourth quarter earnings that exceeded expectations Wunderlich Securities reviewed Shutterstock Inc (NYSE: SSTK) reiterating its Buy rating and $92 price target.

The stock photography company reported a 34 percent increase in revenue to $91.2 million and EPS of $0.35 beating the consensus estimate of $0.32.

Wunderlich Securities analyst Blake Harper wrote, "Business and customer metrics are solid and we expect the company to be able to defend and grow its market share in its core content business while expanding the reach of its platform. We are confident management can fuel further growth via its goals to expand its global presence, cultivate new types of content (video, music, and editorial), and increase Enterprise sales."

Wunderlich offered several key points for Shutterstock:

1. Inline to better fourth quarter financial results and metrics support market share gains- paid downloads were up by 2.3 million. EBITDA margins were strong at 25 percent.
2. Expansion- Management stated three goals to drive revenue growth: global penetration, new content genres, and Enterprise sales. The acquisition of PremiumBeat should help accelerate the music business.
3. Adobe impact is uncertain- increased competition from Adobe is likely to weigh on share price according to analysts, but management reportedly wasn't concerned in a recent conference call.

Shutterstock Inc. closed Thursday at $59.24.