UPDATE: Monness Crespi Hardt Downgraded Shutterfly to Neutral on Valuation

Monness Crespi Hardt downgraded Shutterfly (NASDAQ: SFLY) from Buy to Neutral.

Monness Crespi Hardt commented, "We are downgrading SFLY shares because: 1) Shares have appreciated by 32% since our February 2nd, 2012 upgrade in part because the company has consistently exceeded low revenue and profitability expectations it set a year ago; 2) Recent results, helped by low-margin commercial revenue and purchased Kodak Gallery revenue, have obscured tepid underlying results in the core SFLY business + Tiny Prints; 3) 2013 Street consensus estimates look too high and thus the primary catalyst for the run from ~ $24 to $33 in the past twelve months (upside to expectations) may be difficult to replicate in 2013; and 4) the “optionality” catalyst of an acquisition or shutdown of key competitor Snapfish is difficult to predict."

Shutterfly closed at $33.07 on Friday.