UPDATE: Stifel Nicolaus Downgrades Arkansas Best Corporation to Hold on Labor Negotiations Uncertainty
Stifel Nicolaus downgraded Arkansas Best Corporation (NASDAQ: ABFS) from Buy to Hold and removed a $15.00 price target.
Stifel Nicolaus commented, "With now just an OK upside/downside case in ABFS ahead of its labor negotiations, we are taking our rating to Hold. In addition, our EPS estimates are moving lower as a result of the poor 4Q12 results. Of course, those estimates assume the new labor contract (currently in negotiations) does not provide ABF any wage/benefit concessions. With concessions, there is a wide range of possible positive outcomes that could significantly boost the company's prospects and stock price, in our view, but it is impossible to know what the final contract will look like or when it will be signed. There is a lot of time between now and then to wait and worry, so the stock should be fairly volatile through March."
Arkansas Best Corporation closed at $10.83 on Wednesday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.