UPDATE: Deutsche Bank Downgrades Arkansas Best on More Balanced Risk/Reward
In a report published Monday, Deutsche Bank analyst Justin Yagerman downgraded the rating on Arkansas Best Corporation (NASDAQ: ABFS) from Buy to Hold, but reiterated the $29.00 price target.
In the report, Deutsche Bank noted, “We are downgrading shares of ABFS to Hold as we now see a more balanced risk/reward with the stock trading roughly 7% below our price target. While we remain optimistic that ABFS will eventually be able to implement the 7% Teamster wage reduction, the timetable has been pushed back by at least two months (best case) following the Central and West Regions decision to vote down the supplements in late August. However, if ABFS is not able to incentivize the Central Region's rank-and-file to pass the supplements and/or Teamster leadership comes up with a creative solution, the timetable would be pushed out even further. Accordingly, ABFS is now Hold-rated.”
Arkansas Best Corporation closed on Friday at $26.87.
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