Stifel Nicolaus Says Buy Liquidity Services on Weakess

Stifel Nicolaus has published a research report on Liquidity Services

after hosting CFO Jim Rallo at its Internet and Media Conference yesterday. In the report, Stifel Nicolaus writes, "CFO Jim Rallo reiterated a view from the last earnings conference call that the company may not continue tosee the level of margin expansion that it has seen recently. We note that the company's adjusted EBITDA margins have been increasing due to operating leverage, but not because the company has been raising the spreads that it earns on goods sold on its platform. Gross margins are flat-to-down y/y, but the acquisition of Jacobs Trading makes it difficult to compare" Stifel Nicolaus maintains its Buy rating and $72 price target on Liquidity Services, which is currently trading down 8.88% from yesterday's $57.34 closing price.