Baird analyst Colin Sebastian said Shutterfly disappointed in its most important seasonal quarter. The analyst noted the consumer segment revenues were below guidance once again, and he believes there is increasing pressure on management to integrate LifeTouch with the core Shutterfly business through revenue synergies. He also said the pending departure of the company's CEO and the board's strategic review could distract from the company's current strategic direction. Sebastian maintained his Neutral rating and lowered his price target to $45 from $55 on Shutterfly shares.