Baird Remains Neutral on Liquidity Services (LQDT) Following DoD Scrap Liquidation Contract Extension

Baird maintains a Neutral rating and $11.00 price target on Liquidity Services (NASDAQ: LQDT) following a Scrap Liquidation contract extension. Analyst Colin Sebastian believes that the extension could provide a near-term boost.

Sebastian commented, "After the close, LSI announced a contract extension for its Scrap liquidation contract (10-15% of revenues), which would have otherwise expired June 30. We believe the extension helps ease some concerns over near-term DoD revenues, and could drive some upside in F4Q (Sept). New nine-month contract terms also include a higher commission rate (35% vs. ~25% previously), three 90-day extension options, and certain category/location-based termination rights for DoD."

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 $9.53 yesterday.

You May Also Be Interested In

• Citi Downgrades UBS AG (UBSG:SW) (UBS) to Neutral
• Citi Reiterates Buy Rating on Nucor (NUE)
• Spotify (SPOT) PT Raised to $396 at Rosenblatt