UPDATE: Benchmark Company Reiterates on Liquidity Services Ahead of F4Q13 Results Report
In a report published Wednesday, Benchmark Company analyst Daniel L. Kurnos reiterated a Buy rating on Liquidity Services (NASDAQ: LQDT), but lowered the price target from $40.00 to $33.00.
In the report, Benchmark Company noted, “Liquidity Services, Inc. (LQDT-Buy, PT from $40 to $33) is set to report F4Q13 (September) results tomorrow before the market opens. Shares have remained under pressure reflecting underperformance in the Consumer vertical earlier in the year followed by lingering uncertainty surrounding the outcome of the Surplus Contract bidding process. We are maintaining our stance that Liquidity will most likely retain both the Scrap and Surplus contracts, but are lowering our numbers ahead of the quarter to reflect what we believe is a fair estimate for at-risk EBITDA due to increased competition within the bidding process. Our 2014E EBITDA falls from $124 million to $99 million, although we would point out that, even at our revised forecast, shares still trade at only 8x EV/EBITDA, which we view as an unwarranted discount to ecommerce peers at 10x.”
Liquidity Services closed on Tuesday at $27.56.
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