LQDT Reports Robust Results For Q1

Analysts at Janney Montgomery Scott maintain their "buy" rating on Liquidity Services (NASDAQ: LQDT), while raising their estimates for the company. The target price for LQDT has been raised from $13 to $14.

Liquidity Services has reported its Q1 results ahead of the estimates, driven by improving Surplus and Commercial margins and lower sales/marketing costs. “We continue to expect LQDT to deliver FY10 EBITDA growth of 20% driven by improving Commercial growth and rebound in Scrap off easy comps, while Surplus margins improve with a new contract (despite lower volume),” the analysts say.

“We expect 15% growth in Commercial GMV in FY10 driven by an increasing number of new partners (475 large sellers) and increasing penetration with existing accounts,” according to Janney Montgomery Scott. Janney Montgomery Scott has raised its EPS estimate for FY10 from $0.48 to $0.50.

More Analyst Ratings here