Citi Initiates GSI Commerce at Buy (GSIC)

Citigroup Global Markets initiated coverage of GSI Commerce, Inc. (NASDAQ: GSIC) with a Buy rating this morning. Citi established a $29 Price Target on the stock.

Citi "interprets GSIC’s recent underperformance (down 13% YTD & down 18% over the past month) as reflecting near-term investor concerns over both an uncertain Retail outlook and GSIC’s stepped up acquisition activity."

Analysts at Citi "view GSIC as one of the best Small-Mid Cap plays in eCommerce."

Citi's "target multiple is largely driven off of growth assumptions, but we usually also consider historical multiple ranges, relative sector multiples, and intangibles like management's execution track record."

GSI Commerce (GSIC) is a leading eCommerce technology outsourcing company. Shares are higher by 3.4% this morning, to $22.64.