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UPDATE: Stifel Downgrades Celadon Group, Low Truckload Price Increases Due To Weather

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In a report published Tuesday, Stifel analyst David Tamberrino downgraded Celadon Group, Inc. (NYSE: CGI) to Hold from Buy, lowering its price target to $19.00 from $22.00.

According to the report, the updated target multiple (from 14.5x to 15.0x) reflects a decrease in the discount applied to the shares for the time-value of money.

“From conversations with management over the past quarter, along with 4Q13 weather events, continued low single digit dry van truckload price increases, lackluster truckload freight volume demand, slow but continued ramp in Celadon driver school graduates, and acquisition integrations, et cetera, we believe that our estimates are too high,” the report noted. “As such, we are decreasing our EPS estimates for FY2014, FY2015, and FY2016 from $1.11, $1.36, and $1.64 to $1.00, $1.15, and $1.35. Our CY2013, CY2014, and CY2015 estimates decline from $1.03, $1.23, and $1.50 to $0.99, $1.10, and $1.25, respectively.”

The report further asserted that with the downgrade of CGI, analysts are now neutral on the entire asset-based truckload group under our coverage.

CGI closed Monday at $19.53 with shares trading down at 3.89 percent.

Posted-In: David Tamberrino StifelAnalyst Color Downgrades Analyst Ratings

 

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