UPDATE: Bank of America Lowers Arkansas Best's PO
According to a research report published this morning, Bank of America has lowered Arkansas Best's (NASDAQ: ABFS) PO from $16 to $14.
Bank of America said in the report, "Management noted that it typically posts sequential 2Q improvement of 5 to 7 points in its operating ratio, which would indicate a 100.5% to 98.5% operating ratio for 2Q12 from 105.5% in 1Q12. We target a 98.9% operating ratio, a 660 bp improvement. Continuing in its release, the company noted it experienced a slight operating loss in April 2012, thus it would need to post sizeable operational improvement in the second half of the quarter to meet our targets. At our conference, CFO Newcity noted the impact from its tech investment spend will weigh on margins in the near term."
Bank of America maintains its Underperform rating on Arkansas Best, which is currently trading at $12.96.
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