UPDATE: Benchmark Reduces PT to $80 on PriceSmart on More Conservative 2013 EPS Estimates

Benchmark reiterated its Buy rating on PriceSmart

but reduced its price target from $87 to $80. Benchmark commented, "While PriceSmart's operating margin declined on one-time costs and a lack of leverage of SG&A, despite double digit comps, management implemented its first membership fee increase in eight years. While we lowered our 4Q12 EPS to $0.58, from $0.63, we maintained our FY13 EPS of $2.68, as the increase in highly profitable membership fee income offset our more conservative SG&A outlook. We lowered our price target to $80, from $87, on a more conservative 30x our 2013 EPS estimate." PriceSmart closed at $66.64 on Tuesday.