YRC Worldwide Shares Spike Higher on 'High Risk, High Reward' Upgrade from BB&T
Shares of YRC Worldwide (NASDAQ: YRCW) were upgraded from Hold to Buy by BB&T Capital's Thomas Albrecht. The analyst set a $40 price target, suggesting upside of over 30 percent from current levels.
Albrecht attributed the upgrade to his view of a "high risk, but potentially high reward" situation.
Albrecht believes YRC is currently in second phase of its turnaround. The analyst sees optimized networking, revitalizing sales and marketing, and lowered costs resulting from an expiring Teamster contract spelling substantial upside if the turnaround is successful.
Material improvements in operating ratios in its Freight and Regional units were seen as positive indicators toward the favorable turnaround.
YRC Worldwide shares soared in the premarket, opening at $30.86, over 8 percent higher from Friday's close of $28.75. The stock remains up more than 7 percent to $30.82 at last check.
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