UPDATE: J.P. Morgan Upgrades Arkansas Best Following 8-K Publishing
In a report published Thursday, J.P. Morgan analyst Thomas R. Wadewitz upgraded the rating on Arkansas Best (NASDAQ: ABFS) from Underweight to Neutral, and raised the price target from $28.00 to $34.00.
In the report, J.P. Morgan noted, “On Wednesday afternoon ABFS published an 8-K that indicated the company has a plan to close 22 terminals. We estimate full-year cost savings in a range of $15-25 million, or$0.36-0.59 per share, from this action in combination with terminals already closed in 2H13. ABFS is clearly on a path of improving their cost structure. While we do not believe valuation is attractive on our EPS estimates, we think it is difficult to maintain a negative call on their cost structure and outlook. As a result we are raising our rating to Neutral from Underweight.”
Arkansas Best closed on Wednesday at $34.39.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.