The Benchmark Company Lowers Estimates on Vitacost.com (VITC)

The Benchmark Company is out with a research report this morning, where it reiterates its Buy rating on shares of Vitacost.com

; it has an $11.00 price target on the stock. The Benchmark analysts cited the company’s most recent earnings announcement, which was worse than expected due to ““weaker than expected demand, as well as the continuation of manufacturing logistics issues.” Margins were also under pressure during the quarter. The analysts also noted that a manufacturing shortfall created a backlog for some of VITC’s proprietary products, which resulted in several hundreds of millions of revenue dollars being lost in the first half of the year. Though management has restocked the items and revamped its software, the Benchmark analysts do not believe the issue is fully solved. They also added, “We lower our 2010 operating income before depreciation and amortization (OIBDA or EBITDA) estimate from $26 million to $16 million and our 2010 EPS estimate from $0.45 to $0.22 to reflect margin uncertainty.”