Analyst Michael Pachter of Wedbush maintained a Buy rating on Getty Images Holdings (GETY – Research Report), with a price target of $7.70.
Michael Pachter has given his Buy rating due to a combination of factors surrounding the strategic merger between Getty Images and Shutterstock. The merger has been approved by both companies’ boards and is expected to clear regulatory hurdles, potentially closing within the year. Pachter appreciates the merger’s potential to enhance cross-selling opportunities, allowing Getty to offer its premium content to Shutterstock’s broader customer base, which could drive revenue growth.
Furthermore, the post-merger financial metrics appear favorable, with Getty trading at a relatively low EBITDA multiple compared to Shutterstock. The combined entity is expected to achieve significant operational synergies, potentially increasing EBITDA and reducing the valuation multiple further. Pachter anticipates that the company will manage its increased debt effectively, with plans to reduce it quickly post-merger, supported by strong EBITDA performance. These factors contribute to his positive outlook and the Buy rating for Getty Images Holdings.