UPDATE: Wedbush Reiterates Outperform Rating, Lowers PT on Sotheby's

In a report published Wednesday, Wedbush Securities reiterated its Outperform rating on Sotheby's (NYSE: BID), but lowered its price target from $46.00 to $38.00.Wedbush noted, “Sotheby's reported Q2 revenue of $304 million, below the consensus estimate of $330 million, due to a 110 basis point decrease in auction commission margin to 15.3%, the lowest rate since Q3:08, on competitive pressure to win high value consignments. Given the decline in sales, salaries and related costs increased 180 bps to 27.9% and G&A increased 160 bps to 13.1% of sales, resulting in EPS of $1.24, below the consensus estimate of $1.49. While Q2 results fell below expectations, management noted that the initial read on fall consignments remains positive and healthy.”Sotheby's closed on Tuesday at $30.77.