Citigroup maintained Arkansas Best ABFS at Neutral but reduced its price target from $10 to $8.
Citigroup noted, "We maintain our Neutral rating, but lower our price target to $8 from $10, as we apply a 3x target multiple (from 3.5x) on a lower 2013 estimate. Our lower multiple reflects deepening concern over its structurally higher costs due to its worst-in-class labor arrangement. Its possible progress can be made in its current Teamster negotiation, but we believe material concessions may not be achievable without real financial distress, putting it in the position of not being distressed enough to drive changes."
Arkansas Best closed at $7.25 on Tuesday.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in