On Friday, Benchmark analysts maintained their Buy rating on Getty Images Holdings Inc. (NYSE: GETY) with a price target of $6.00. The reaffirmation follows the recent announcement of a merger between Getty Images and Shutterstock (NYSE:SSTK: NR), which was made public earlier in the week. The proposed merger is described as a "merger of equals," with the ownership structure to be divided approximately 55% for Getty Images and 45% for Shutterstock.
The combined forces of the two companies are expected to create a robust platform capable of innovating and potentially mitigating the disruptive impact of generative AI. Shutterstock's extensive reach in the rest of the world (ROW) and its small and medium-sized business (SMB) exposure are touted as valuable additions to Getty Images' business mix and strategic direction.
While immediate revenue synergies may not be clearly visible, analysts anticipate that these will become a significant driver of the stock's value in the future. The merger is also seen as a solution to the current float challenges associated with Getty Images' share ownership.
Upon completion, the merged entity will continue to operate under the name Getty Images Holdings, Inc. Mark Getty is set to take the role of Chairman of the Board, with Craig Peters continuing as CEO. The transaction is expected to finalize in the second half of 2025.
The $6.00 price target set by Benchmark is based on a discounted cash flow (DCF) analysis. This target remains in place as the firm reiterates its confidence in the stock's potential post-merger.
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