Sell-side reaction to GSI Commerce's (GSIC) quarter

Here's how Friedman Billings Ramsey analyst Shawn Milne reacted to 4Q results from GSI Commerce (ticker: GSIC):

Increasing confidence in  long-term growth and leverage opportunity--maintain Outperform. The  fourth quarter was a strong one, with better than expected NMS and revenue growth, gross margin expansion, and strong year-over-year improvement in  EBITDA (despite ongoing investments). Importantly, given strong growth in  GSIC’s existing business (20%-30%), rapidly expanding service deals,  and new partner additions, we have increasing confidence in our 2005 and  2006 operating targets. Currently, GSIC is  trading at approximately 14x our new FY06 EBITDA estimate of $43 million,  versus 14x-20x for a peer group of Internet companies. We maintain our  Outperform rating and slightly increase our price target to $22 from  $20 based on 20x our FY06 EBITDA estimate.

GSIC chart below.

Full disclosure: at the time of writing I'm short GSIC.