UPDATE: Wunderlich Securities Initiates CH Robinson Worldwide with Hold, $68 PT; On the Wrong Side of Truck Supply/Demand
Wunderlich Securities initiates its coverage on CH Robinson Worldwide (NASDAQ: CHRW) with a Hold rating and a $68 price target.
Wunderlich Securities comments, "We view CHRW as one of the highest quality transportation names in the market. CHRWs variable cost structure, flexible model, systems, and scale enable it to quickly adapt and succeed in multiple market conditions. CHRW's share liquidity, debt-free balance sheet, and $300 million of annual free cash flow lend a defensive component to the stock. However, CHRW's Achilles heel is a slow growth market where supply and demand are fairly balanced (leading to net revenue margin pressure). We expect sub-par earnings growth (below 15%) will persist over the near term."
CHRW closed at $60.62 on Wednesday.
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