UPDATE: Benchmark Downgrades PriceSmart to Hold on Valuation
Benchmark lowered its rating on PriceSmart (NASDAQ: PSMT) from Buy to Hold while raising its price target from $80 to $86.
Benchmark noted, "Despite Colombia and store base continuing to show strong growth, the share price exceeded our prior price target and is in striking distance of our new price target. We maintained our FY13 EPS of $2.68, as we remain conservative on operating margin, given expected price reductions and the lack of leverage on operating expenses despite double digit comps. ... Given 24% increase since the reporting of 3Q12, our conservative stance on operating margins, and the limited upside to our new price target, we are down grading to Hold, from Buy."
PriceSmart closed at $82.87 on Wednesday.
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