UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on Heartland Express
In a report published Monday, Deutsche Bank reiterated its Hold rating on Heartland Express (NASDAQ: HTLD), but slightly lowered its price target from $14.00 to $13.00.
Deutsche Bank noted, “Friday (11/16), HTLD announced a $1.00/share special dividend payable on December 17, 2012 to shareholders of record on December 7, 2012. The dividend highlights HTLD's free cash flow generation despite a mediocre freight environment, however, there has been some strengthening QTD post-Sandy. While HTLD could have afforded to pay an even higher special dividend, (DB had estimated that HTLD could pay up to a $2.20/share special dividend though we were underestimating 2013 capex), our sense is that HTLD may become more aggressive on share repurchases as a means of returning cash to shareholders given its strong cash balance sheet (roughly $127.7 million on a pro-forma basis using September 30, 2012 cash balance, minus $85 million from the special dividend).”
Heartland Express closed on Friday at $13.60.
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