U.S. Auto Parts Network (PRTS) Buy Rating Reiterated

Craig-Hallum analysts Mitchell Bartlett and George Kelly reiterated their Buy rating and price target of $8 for shares of U.S. Auto Parts Network, Inc. (Nasdaq: PRTS).

The analysts said that U.S. Auto Parts Network had a stronger quarter in a difficult operating environment.

Bartlett and Kelly heaped praise upon the company: "We believe this company is sitting in the sweet spot of a market that’s still in its early stages. PRTS has $1.35 per share in cash with no debt, improving free cash flow, a management team that has given investors (and us) a taste of what’s possible, and in our opinion, a valuation based on a lack of understanding of what the company is all about. We are reiterating our buy rating and $8 price target based on a 9.5X EV/EBITDA multiple on our 2011 EBITDA estimate of $21.8M."

The analysts cited the companies year on year growth in revenue of 36%, as well as earning that easily beat Wall Street expectations.