In a report published Tuesday, Wunderleich Securities Analysts Nicholas Bender reiterated a Buy rating on Swift Transportation SWFT and raised its price target to $26 from $24. Swift recently reported EPS on the higher end of estimates, which are expected to increase by an addition 15% by management's FY14 guidance. Swift is also trading a slight discount to its peers.
Wunderleich Securities noted, "Despite numerous growth drivers that include share gain in a consolidating market, tuck-in acquisitions, and operational improvement, shares of SWFT continue to trade at roughly a 300-400 bps discount to the peer group on a forward P/E basis. Operational execution, systematic deleveraging, debt refinancing, and outsized leverage to improving freight fundamentals should result in a more normalized peer group multiple for Swift. We are raising our price target from $24 to $26 based on a 16x multiple applied to our FY15 EPS."
On Monday, Swift Transportation Company closed at $21.60.
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