UPDATE: Bank of America Upgrades Liquidity Services to Buy, Raises PT Following Strong GMV Growth Returns

In a report published Wednesday, Bank of America analyst Nat Schindler upgraded the rating on

from Underperform to Buy, and raised the price target from $28.50 to $45.00. In the report, Bank of America noted, “Liquidity Services GMV numbers have reaccelerated in July ($81mn, up 7.1% y/y) and August ($90mn, up 14.5% y/y) from organic declines in FYQ3 (down 11% y/y). With more than $171mn in the first two months of the quarter, we now believe LQDT will beat our FY4Q estimate of $223mn (guidance of $200-225mn) by a large margin and are raising our quarterly estimate to $250mn. Even at this higher level, the implied Sept number of $78mn is still down 10% y/y, a conservative assumption in our view. July/August GMV numbers make us cautiously optimistic that organic growth has returned to LQDT. However, it is still difficult to explain why the only at-scale player with single digit penetration in a highly fragmented +$150bn reverse supply chain industry would show y/y organic declines in five of the first six months of 2013.” Liquidity Services closed on Tuesday at $34.00.