UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on Liquidity Services
In a report published Friday, Deutsche Bank reiterated its Buy rating on Liquidity Services (NASDAQ: LQDT), but lowered its price target from $50.00 to $36.00.
Deutsche Bank noted, “Liquidity Services reported in-line with the previously pre-announced levels, and lowered FY guidance significantly based on underperformance at recently acquired GoIndustry, as well as degrading trends in the core business. Existing customers are reducing flows to LQDT while new clients are not ramping fast enough. After several questionable quarters and guidance reductions, we believe LQDT shares are still in the value trap phase, but could start to move out at some point in 2013. We have reduced our GMV and EBITDA for F2014 by 14% and 15%, shares remain Buy rated.”
Liquidity Services closed on Thursday at $41.07.
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