UPDATE: Stifel Nicolaus Raises OT to $24 on Roadrunner Transportation Systems on Growth
Stifel Nicolaus reiterated its Buy rating on Roadrunner Transportation Systems (NYSE: RRTS) and raised the price target from $23.00 to $24.00.
Stifel Nicolaus noted, "Roadrunner management made it very clear on its conference call that it plans to continue its aggressive acquisition-driven growth strategy in 2013. The company's pipeline of deals appears to be full, and it has $20mm of cash on its balance sheet and an untapped $125mm revolver ready to spring into action. Acquisitions may be small or large, but the most important criteria along with the right price (4x-6x EBITDA and immediately accretive) is a good cultural fit, as the company wants the integration into Roadrunner of the business to go smoothly and be long-lasting and positive."
Roadrunner Transportation Systems closed at $19.80 on Wednesday.
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