Deutsche Bank analysts gave an upgrade to logistics company C.H.
Robinson Worldwide, Inc. ( CHRW ) on Friday.
The analysts boosted the rating for CHRW from "Hold" to "Buy"
with a price target of $72.00. That price target suggests up to a
17.1% upside to Friday's closing price of $61.48.
Deutsche Bank commented, "We are reinstating coverage of CHRW
with a Buy-rating following the completion of its acquisition of
Phoenix International, a freight forwarder that generated more than
$807 million in gross revenue and $161 million in net revenue for
the fiscal year ended June 30, 2012. CHRW purchased the company for
$571.5 million in cash and roughly $63.5 million in newly-issued
CHRW shares on November 1, 2012. We believe the acquisition will
reinvigorate CHRW's top- and bottom-line growth rates and net
revenue margins driving P/E multiple expansion. Net revenue margin
contraction abated in Q3 2012 and should be a tailwind in 2013-14.
C.H. Robinson shares were flat in premarket trading. The stock
is down $8.30, or -11.89%, year to date.
The Bottom Line
Shares of C.H. Robinson Worldwide ( CHRW ) have a
2.15% dividend yield, based on Friday's closing stock price of
$61.48. The stock has technical support in the $56-$57 price area.
If the shares can firm up, we see overhead resistance around the
$65-$66 price levels.
C.H. Robinson Worldwide, Inc. ( CHRW ) is
not recommended at this time, holding a Dividend.com DARS™ Rating
of 3.2 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well
as a detailed explanation of our ratings system here .
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