UPDATE: Benchmark Initiates Coverage on PriceSmart

Benchmark has published a report on PriceSmart (NASDAQ: PSMT) initiating coverage on the warehouse shopping club company.

In the report, Benchmark wrote, "We contend that the shares have upside potential, given the Company's growth and operating margin opportunities. We believe over the next couple years, PriceSmart will continue to expand its store base, in adjacent real estate markets, strengthening its productivity loop, which could lead to years of revenue and earnings growth."

Benchmark rated PriceSmart a BUY with a price target of $70.00. PriceSmart closed Tuesday at $57.26.