UPDATE: Stifel Nicolaus Reiterates Buy, Raises Target to $43 on Liquidity Services
Stifel Nicolaus maintains its Buy rating on Liquidity Services, Inc. (NASDAQ: LQDT) and raises its target price to $43 from $41 on window opened by strong September results now interpreted correctly by investors.
Stifel says, “On the conference call, LQDT made it clear to investors that the company posted very solid F4Q results, beating estimates. However, there was a bit of drama as the market initially reacted to a headline number of $0.14, which included a one-time tax hit of $0.06 (a partial reversal from the benefit in F3Q, which was also normalized out). Therefore, PF EPS was actually $0.20, at the high end of guidance. If the loss from the now discontinued U.K. operations were added back, operating PF EPS would have been closer to $0.24, which is normal at the reported EBITDA level.”
LQDT closed at $36.97 per share on Tuesday.
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