UPDATE: Goldman Sachs Downgrades Expeditors International of Washington to Neutral, Lowers PT on Shift in Strategy

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In a report published Wednesday, Goldman Sachs analyst Tom Kim downgraded the rating on
Expeditors International of WashingtonEXPD
from Buy to Neutral, and lowered the price target from $49.00 to $45.00. In the report, Goldman Sachs noted, “We downgrade EXPD stock to Neutral from Buy. In its 3Q results on Nov 5, EXPD stated that it adjusted its pricing during the quarter to maintain share of ocean freight, and even gain share on certain lanes. This change in strategy took us and the market off guard, since management has historically stated that it prices for profitability, not share. While EXPD expects this to be a short-term shift to adjust to the current market environment, we think it creates an added level of uncertainty in an already choppy freight market. Since adding EXPD to the Buy List on 10/25/12, the stock is up 21.3% vs 24.8% for the S&P500. We attribute the underperformance to the disappointing earnings recovery.” Expeditors International of Washington closed on Tuesday at $43.41.
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Posted In: Analyst ColorDowngradesAnalyst RatingsGoldman SachsTom Kim
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