GSIC's Price Target Lowered To $25

Benchmark has published a research report on GSI Commerce (NASDAQ: GSIC) after the company reported 3Q results that exceeded expectations, albeit slightly.

In the report, Benchmark writes "Management offered 4Q10 revenue guidance of $529 million, up 23% y/y, matching consensus. Adjusted EBITDA guidance of $91- $93 million, up 21-24% y/y, stands below consensus at $98 million, with FY10 EBITDA guidance of $133-$135 million below management's prior $135 million forecast. We raise our FY10 revenue estimate by $26 million to $1.35 billion, up 34 % y/y, driven by 43% y/y growth in Product sales and 24% y/y growth in Service fees. However, we lower our adjusted EBITDA estimate by $3 million to $137 million, up 29% y/y, reflecting a 40bp y/y EBITDA margin contraction. Our EPS estimate comes down by $0.02 to a loss of $0.22. Free cash flow could be $0.78 per share."

Benchmark maintains its Hold rating but has lowered the price target to $25.

GSI Commerce closed yesterday at $25.35.