Morgan Stanley Sees FY15 as Pivotal Year for UTi Worldwide
In a report published Tuesday, Morgan Stanley analyst William J. Greene reiterated an Equal-Weight rating on UTi Worldwide (NASDAQ: UTIW).
In the report, Morgan Stanley noted, “UTIW delivered a F4Q adjusted operating loss of $14M, below consensus and MS estimates as well as the mid-pt of mgmt's guidance for a ~$7M op loss, as weaker than anticipated freight forwarding fundamentals together with continued transformation costs weighed on overall results. Mgmt maintained its ultimate run-rate savings target of $75-$95M/yr. to be achieved by FYE15, but also reiterated expectations to incur $18M in duplicative and implementation costs through FY15, which will weigh more on 1H results.
"Mgmt continues to expect the IT roll-out to be completed by August – as such, FY15 will prove to be a pivotal year in UTIW's multi-year transformation, as financial results should start showing material improvement in the back half of the year once the roll-out is complete and associated costs subside.”
UTi Worldwide closed on Monday at $10.59.
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