UPDATE: J.P. Morgan Downgrades C.H. Robinson Worldwide to Underweight on Persistent Competitive Pressures
In a report published Tuesday, J.P. Morgan analyst Thomas R. Wadewitz downgraded the rating on C.H. Robinson Worldwide (NASDAQ: CHRW) from Neutral to Underweight, and lowered the price target from $62.00 to $50.00.
In the report, Wadewitz noted, “We are lowering our rating on CHRW to Underweight from Neutral as we believe that broader competitive challenges are likely to persist in its core truckload brokerage business and valuation compression is likely to continue against a backdrop of limited EPS growth. While the gross margin pressure in JBHT's brokerage division in 1Q points to potential risk to CHRW's 1Q EPS, our call is based more on a view that competitive pressures from a number of fast growing private and public brokers is likely to be persistent headwind for CHRW.”
C.H. Robinson Worldwide closed on Monday at $57.51.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tags: J.P. Morgan