UPDATE: Deutsche Bank Downgrades CH Robinson Worldwide to Hold
Deutsche Bank reduced its rating on CH Robinson Worldwide (NASDAQ: CHRW) from Buy to Hold and lowered its price target from $77 to $58.
Deutsche Bank said, "Despite earlier optimism that CHRW was gaining market share, and would have a net revenue margin expanding opportunity in H2 2012, we are backing off of that call as material net revenue margin improvement now seems more distant. CHRW continues to struggle in a stable trucking market where carriers are demanding high rates for capacity, and customers are seeking bargains from brokers. CHRW's strategy has been to allow its brokers to aid customers and maintain CHRW's capacity at the expense of earnings growth and senior management seems reluctant to intervene. Long-term, this may work, but we will wait on the sidelines until a growth catalyst emerges."
CH Robinson Worldwide closed at $56.25 on Tuesday.
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