Liquidity Services (LQDT) Not 'Rollup' - Oppenheimer
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Price: $43.47 +1.23%
Rating Summary:
5 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Liquidity Services Inc. (Nasdaq: LQDT) is a business-to-business online auction marketplace for wholesale, surplus, and salvage assets. On Friday Liquidity Services stock declined sharply, falling from near $47 to below $43 per share.
Analyst at Oppenheimer attribute the move to the release of data that showed its slowest organic growth rate in six months. This had some calling growth at Liquidity Services a "rollup" -meaning its growth is fueled by acquisitions rather than organic growth.
Oppenheimer disagrees with this thesis and listed several reason why.
"September organic Commercial growth was 25% y/y, above the company's long-term target and the Street's longterm forecast," wrote analyst Jason Helfstein.
"Even if organic growth stabilizes at 18%-20%, this would exceed US eCommerce at 13%-14%, and create a very attractive stock for GARP buyers. Mgmt has historically discussed a 15%-20% organic target,” add Helfstein.
Oppenheimer reiterate an Outperform rating on Liquidity Services (NASDAQ: LQDT) with a price target of $65.00
For an analyst ratings summary and ratings history on Liquidity Services click here. For more ratings news on Liquidity Services click here.
Shares of Liquidity Services closed at $42.30 yesterday.
Analyst at Oppenheimer attribute the move to the release of data that showed its slowest organic growth rate in six months. This had some calling growth at Liquidity Services a "rollup" -meaning its growth is fueled by acquisitions rather than organic growth.
Oppenheimer disagrees with this thesis and listed several reason why.
"September organic Commercial growth was 25% y/y, above the company's long-term target and the Street's longterm forecast," wrote analyst Jason Helfstein.
"Even if organic growth stabilizes at 18%-20%, this would exceed US eCommerce at 13%-14%, and create a very attractive stock for GARP buyers. Mgmt has historically discussed a 15%-20% organic target,” add Helfstein.
Oppenheimer reiterate an Outperform rating on Liquidity Services (NASDAQ: LQDT) with a price target of $65.00
For an analyst ratings summary and ratings history on Liquidity Services click here. For more ratings news on Liquidity Services click here.
Shares of Liquidity Services closed at $42.30 yesterday.
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