Shares for GSI Commerce (Nasdaq: GSIC) were upgraded to a “buy” from analysts at Needham & Co. who set a target price of $24 this morning. GSI stock had shed more than 25% of its value over the last week, falling from a high of $26.46 down to $19.77.
Friday’s drop came after a downgrade by Jefferies & Co. analyst, Ross MacMillan. He observed aggressive discounts by GSI this holiday season across its partners’ sites. So MacMillan cut profit forecasts and adjusted the price target to $26 on Friday, which is well above today’s closing price.
Did the market over-react on Friday’s news? Needham & Co. thinks so, which prompted today’s upgrade. That didn’t prevent the stock from closing down on Monday. After hours trading is showing a slight rebound.