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The March 17 appointment of Christopher North as CEO of digital photo firm Shutterfly ( SFLY ) signals the company’s intent to remain independent, despite rumors of buyout offers, says RBC Capital Markets. In a research note sent to investors late Wednesday, RBC analyst Rohit Kulkarni said North’s appointment signals the firm’s likely intent to rebuff takeover offers from bidders such as private equity firm Thomas H. Lee Partners. Shutterfly stock is down 2% since the CEO announcement, though shares were up 1.5% in late-afternoon trading on the stock market today , near 46.The company has a weak IBD Composite Rating of 58, where 99 is the highest. Kulkarni rates Shutterfly stock to outperform, and has a price target of 48. The analyst said the firm’s Q4 results were “nothing to get excited about,” but he said he is willing to “remain patient” to give the new management team time to jell. He sees the possibility of profit margins rising and sales accelerating. North, a 10-year veteran of Amazon.com ( AMZN ), has a “resume and impressive track record,” Kulkarni wrote in his research note. North was one of the executives at Amazon’s U.K. operation, Shutterfly said in its press release announcing the hiring. Before Amazon, North held leadership rolls with Phaidon Press and HarpersCollins Publishers, and was once a media and entertainment consultant for Booz Allen Hamilton, according to the RBC research note. “We believe Mr. North’s appointment will help Shutterfly reinvigorate such core metrics,” Kulkarni said. “And given his experience, Mr. North at the helm could open up international possibilities for Shutterfly.” North’s appointment is effective May 31. Company Chairman Philip Marineau is its temporary CEO. On Dec. 1, Shutterfly announced that 11-year CEO Jeffrey Housenbold was resigning as of February “to pursue other opportunities.” He also resigned as president and board member. Scalper1 News
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