Barrington analyst Gary Prestopino maintained a Buy rating on Liquidity Services today and set a price target of $40.00.
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Gary Prestopino has given his Buy rating due to a combination of factors including Liquidity Services’ strong financial performance in Q4/25, which surpassed expectations. The company reported an adjusted EBITDA of $18.5 million, significantly higher than both the company’s guidance and consensus estimates. Additionally, the company’s GMV increased by 12% to $404.5 million, indicating robust growth across its segments.
Another reason for the Buy rating is the company’s solid balance sheet, with cash reserves increasing to $185.8 million and no debt, providing financial stability. Liquidity Services also announced a $15 million increase in its share repurchase authorization, reflecting confidence in its future prospects. The company’s diverse business segments, such as GovDeals and CAG, showed strong growth, contributing to the overall positive outlook. The guidance for Q1/26 suggests continued growth, with expected improvements in profitability metrics, further supporting the Buy recommendation.