UPDATE: Deutsche Bank Reinstated Coverage of C.H. Robinson Worldwide Upgrading to Buy, Raised PT
Deutsche Bank has reinstated coverage of C.H. Robinson Worldwide Inc. (NASDAQ: CHRW) upgrading from Hold to Buy, and raised price target from $58 to $72.
Deutsche Bank noted, "While our 2012 EPS estimate of $2.79 remains unchanged, we have adjusted our 2013 EPS estimate to $3.16, from $3.24 to reflect CHRW's acquisitions of Phoenix International and Apreo Logistics, its divestiture of T-Check, and our revised truck gross profit estimates. CH RW is Buy-rated as we see a favorable risk/reward given re-accelerating earnings growth and limited downside risk. Our $72 price target is derived by applying a 21.5x P/E multiple on our new 2014 EPS estimate of $3.64 discounte d by 8%. Downside risks include integration risk, worse-than-expected transportation net revenue margins, declining employee productivity levels , and reduced carrier availability."
C.H. Robinson Worldwide closed at $61.50 on Thursday.
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