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UPDATE: J.P. Morgan Reiterates Overweight Rating, Lowers PT on Swift Transportation

Related SWFT
Wunderlich Securities Sees Swift Transportation Getting Back On Track In 3Q14
Wunderlich Securities Sees Solid 3Q14 Results For Swift Transportation Co.

In a report published Monday, J.P. Morgan & Co. reiterated its Overweight rating on Swift Transportation (NYSE: SWFT), but lowered its price target from $13.00 to $11.00.

J.P. Morgan noted, “The sharp rise in fuel prices during 3Q:12 is likely to be a headwind for SWFT's margin and EPS performance. Recent TL market fundamentals are likely to limit the magnitude of y/y pricing growth as demand softens. In the near term, we believe it is likely that EPS will fall on a y/y basis in 2H:12 for SWFT. We note that SWFT's decision to provide bonus payments to its top company drivers and owner operators is expected to be a cost headwind beginning in 2H:12 of $0.02/quarter or $0.08/year. Given our view that the driver market is likely to remain tight, we believe there is a better opportunity for truckload companies with margin expansion stories to deliver significant EPS growth. In our view, SWFT fits well into this category as it has opportunity for further improvement in utilization and productivity and management is focused on OR improvement instead of significant fleet growth.”

Swift Transportation closed on Friday at $8.27.

Latest Ratings for SWFT

DateFirmActionFromTo
Dec 2014Stifel NicolausMaintainsBuy
Nov 2014Bank of AmericaMaintainsBuy
Nov 2014Bank of AmericaMaintainsBuy

View More Analyst Ratings for SWFT
View the Latest Analyst Ratings

Posted-In: J.P. Morgan & Co.Analyst Color Price Target Analyst Ratings

 

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