UPDATE: Benchmark Company Reiterates Buy Rating, Raises PT on Liquidity Services Following Strong August GSS Results

In a report published Tuesday, Benchmark Company analyst Daniel L. Kurnos reiterated a Buy rating on Liquidity Services LQDT, and raised the price target from $38.00 to $40.00. In the report, Benchmark Company noted, “Yesterday, Liquidity Services (LQDT-Buy, PT from $38 to $40) reported its second straight month of better-than-expected GSS results, with August GSS of $90.4 million coming in roughly $25 million ahead of our estimate and representing growth of 36% y/y and 11% m/m. For F4Q13 (September) through August, GSS now totals over $170 million, and, while GSS doesn't translate directly to GMV, is on pace to significantly exceed the high end of GMV guidance of $225 million. We suspect there may have been some pull-forward from September due to an earlier back-to-school season, but have also noticed a recovery in larger lot sizes at Liquidation.com, while overall available merchandise volume has increased as well. We're remaining cautious given the historical lumpiness of the business, but believe the recent results are supportive of our call that, on a long-term basis, growth is sustainable with current penetration levels still extremely low.” Liquidity Services closed on Monday at $34.44.