UPDATE: Bank of America Reiterates on Quality Distribution as Chemical Stabilization is in Sight
In a report published Friday, Bank of America analyst Ken Hoexter reiterated a Buy rating on Quality Distribution (NASDAQ: QLTY), and raised the price target from $13.00 to $16.00.
In the report, Bank of America noted, “We are increasing our price objective on Quality Distribution 23%, to $16 from $13, based on a 17x multiple on our $0.92 2014 estimate. Quality's Energy Logistics segment (19% of revenues) is finding its floor through its continued conversion to a non-asset based structure (selling assets to affiliates and creating steady revenue streams) as well as its increasing its focus on moving oil in the shales, and less water. We believe the improvement could stop the drag at its core Chemical Logistics (66% of revenues) and Intermodal Logistics (15% of revenues) segments.”
Quality Distribution closed on Thursday at $12.85.
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