UPDATE: Stifel Nicolaus Cuts PT to $27 on Werner Enterprises: To Use Debt for Special Dividend

Stifel Nicolaus reiterated its Buy rating on Werner Enterprises WERN but reduced its price target from $28 to $27. Stifel Nicolaus noted, "As of September 30, 2012, the company had $18.0 million (or $0.25 per share) in cash and equivalents on its balance sheet, while the special dividend will amount to approximately a $109 million cash outflow. In order to fund the special dividend, we estimate the company will need to borrow ~$38 million in addition to free cash flow generated in 4Q12. However, we estimate the company should be able to pay down its incurred debt by the end of 2013 from free cash flow." Werner Enterprises closed at $23.30 on Tuesday.