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. BUY."
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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