UPDATE: Wunderlich Securities Reiterates Buy On Celadon Following Yanke Acquisition

In a report published Tuesday, Wunderlich Securities analyst Chaz Jones reiterated a Buy rating on Celadon Group

and reiterated a price target of $23.00. In the report, Wunderlich says "Celadon (CGI) announced that it will acquire N. Yanke Transfer Limited, a Canadian truck and intermodal carrier. This is CGI's 15th acquisition over the last 2 years and the second major Canadian deal in the last six months. While not all of these deals have proceeded as smoothly as hoped (i.e. driver and customer retention) and utilization remains under pressure, there's no denying that thepotential accretion from the Yanke transaction is quite favo rable. We expect this transaction along with several other recent deals should drive double digit revenue growth over the next 18 months. We are conservatively estimating $0.08 of EPS accretion in FY15 using a 94% OR as a base case. We reiterate our Buy rating and $23 price target." Celadon closed on Tuesday at $20.79.