UPDATE: Dahlman Rose Initiates Coverage on Swift Transportation with Hold Rating
In a report published Friday, Dahlman Rose & Co. initiated coverage on Swift Transportation Co. (NYSE: SWFT) with a Hold rating.
Dahlman Rose noted, “We believe that the long-term outlook is favorable for Swift Transportation, as the company leverages a potential truckload (TL) capacity crunch and works to boost its exposure to key growth areas in freight transportation, including intermodal and Mexico cross-border operations. However, we are somewhat cautious about the near-term prospects of the industry, as the economic softness has pressured pricing to the 2-3% range in 1H12, down from 4%+ previously. Additionally, the recent rise in diesel prices could weigh on TL earnings in 3Q12. The Street's near-term EPS expectations for SWFT could prove too high.”
Swift Transportation Co. closed on Thursday at $8.39.
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