- BofA/Merrill's Nat Schneider has lifted Liquidity (LQDT +5.3%) all the way to Buy from Underperform, and has raised its PT to $45 from $28.50.
- Schneider reports the salvage auction site's gross merchandise volume (GMV) grew 7.1% Y/Y in July and 14.5% in August after falling 11% in FQ3 (the June quarter) on an organic basis. As a result, he expects Liquidity to beat his prior FQ4 GMV estimate of $223M "by a large margin." The company's FQ4 GMV guidance stands at $200M-$225M.
- Nonetheless, Schneider states it's "still difficult to explain why the only at-scale player with single digit penetration in a highly fragmented +$150bn reverse supply chain industry would show y/y organic declines in five of the first six months of 2013."
- Shares still -12% YTD due to the disappointing numbers provided earlier this year. 37% of the float was shorted as of Aug. 15.