UPDATE: Piper Jaffray Reiterates Neutral Rating, Lowers PT on U.S. Auto Parts
In a report published Wednesday, Piper Jaffray & Co. reiterated its Neutral rating on U.S. Auto Parts (NASDAQ: PRTS), but slightly lowered its price target from $4.50 to $4.20.
Piper Jaffray noted, “We maintain our Neutral rating on PRTS shares, but are lowering our 2013 revenue estimates by ~15% to account for decreased marketing spend and website consolidation. June revenue fell 4% y/y, a deceleration from +1% y/y in the March quarter, and inline with the -4% y/y revenue decrease in Dec-11. Revenue growth was hurt by a decrease in unique visitors, which led to a 5% y/y decrease in orders and a lower average order value y/y. We believe that competition remains the largest hurdle to pricing and site activity for U.S. Auto Parts. AutoMD, continued to be a bright spot, as it saw unique visitors increase 29% sequentially.”
U.S. Auto Parts closed on Tuesday at $4.31.
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Tags: Piper Jaffray & Co.