The Benchmark Company Reiterates Hold Rating on Bidz.com (BIDZ)

The Benchmark Company is out with a research report this morning, where it reiterates its Hold rating on Bidz.com

; it has a $2.00 price target on the stock. The Benchmark analysts cited the company’s recent earnings report, which was largely better than expected; revenues decreased 5% year over year due to ongoing softness across all categories. The analysts noted that gross margin decreased by 660 basis points and that key metrics remained challenged at BIDZ; specifically, they cited, “a y/y increase in items per transaction from 3.5 to 4, a 10% y/y improvement in average selling price per order and a 29% y/y decrease in acquisition cost per new buyer offset by a 15% y/y decrease in average orders per day, a 2% y/y decline in average items sold per day and an 11% y/y decrease in the number of new buyers.” The Benchmark analysts believe that despite the lack of cash burn, BIDZ needs to return to positive revenue growth and profit before the stock sees any meaningful appreciation.