UPDATE: Benchmark Lowers Price Target on Blue Nile to $28

According to Benchmark, Blue Nile

price target is lowered to $28. Benchmark said that Blue Nile (NILE-Hold, PT from $30 to $28) reported weak 4Q11 results with net revenue falling 2% y/y to $112 million, $11 million below consensus, as core engagement revenue fell and international revenue growth slowed. “Adjusted EBITDA declined 27% y/y to $8.5 million as management announced a new strategy to drive customer acquisition through more aggressive pricing and increased investment in marketing. EPS of $0.30 fell well short of consensus at $0.42.” Blue Nile closed yesterday at $41.83.