UPDATE: Benchmark Company Reiterates Buy Rating, Lowers PT on Liquidity Services

In a report published Monday, Benchmark Company reiterated its Buy rating on Liquidity Services LQDT, but lowered its price target from $73.00 to $62.00. Benchmark noted, “Liquidity Services released the final piece of disappointing September GSS data late last Thursday evening, with Scrap and Surplus coming in well below our expectations. In conjunction with the soft Commercial data released two weeks ago, we now expect GMV for F4Q to come in towards the low end of the guidance range of $230-$240 million, forecasting GMV of $233 million ($240 million prior). Although our long-term outlook remains unchanged given LQDT's strong market position and significant market opportunity, the deceleration in the organic Commercial growth rate to a mid 20% range and the Scrap/Surplus shortfall in September, which may limit profit upside in the quarter, will likely cause the stock to remain under pressure until management can address the issues and offer what we expect will be solid FY13 guidance in late November.” Liquidity Services closed on Friday at $40.76.