UPDATE: Citigroup Downgrades Swift Transportation to Neutral on Softening Economic Sentiment
Citigroup lowers its rating on Swift Transportation (NYSE: SWFT) from Buy to Neutral and reduces its price target from $14 to $10.
Citigroup notes, "We are downgrading Swift to Neutral, from Buy, as we believe softening economic sentiment is likely to provide a headwind to meaningful margin expansion in the intermediate term. While we are trimming estimates modestly, our downgrade is less focused on expected earning performance, but more an acknowledgement of cautiousness likely to be shown to higher beta transportation names, amidst softening macroeconomic indicators and shipper sentiment. We are decreasing our target price to $10, from $14, which is now based on a 9x multiple (from 14x) rolled forward on our reduced 2013 EPS target of $1.10 (from $1.15)."
SWFT closed at $9.41 on Thursday.
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