Benchmark Has Hold on Vitacost.com

The Benchmark Company is out with a research report on Vitacost.com, Inc. VITC and it has a Hold rating and a $5 price target on shares. In a note to clients, The Benchmark Company writes, "Vitacost (VITC-Hold, PT $5) reported 3Q11 revenue of $63.5 million, up 26% y/y, matching our estimate, as ongoing promotional activity, steady customer gains and a ramping SKU count helped drive 36% y/y growth in third-party product revenue. Higher than expected adjusted operating expenses were offset by a smaller than expected contraction in gross margins, leading to an adjusted EBITDA loss of $1.3 million, in line with our estimate. Adjusted EPS was a loss of $0.13 versus our estimate of a $0.07 loss, reflecting a lower than expected tax benefit." Shares of VITC gained 1 cent yesterday to close at $6.10.