Wells Fargo Resumes Coverage Of C.H. Robinson Worldwide, Inc.

C.H. Robinson Worldwide, Inc. CHRW coverage was resumed on Wednesday by Wells Fargo Securities with a Market Perform rating and a valuation range of $69 to $71.

The Wells Fargo report observed that pressures from growing competition and democratization of information will need to watched. The firm is also waiting on evidence of successful integration of the freight-forwarder Phoenix International, which the company acquired in late 2012.

The report also noted that “CHRW has benefited from a tight truckload capacity environment that has resulted from a shortage of drivers coupled with growing industry regulation.”

Wells Fargo believes that “CHRW will continue to benefit over the next 6 months as we come into a historically busy end of the year.” They do not recommend buying the shares, however, due to a "growingly competitive market place with more sophisticated entrants.”

The Wells Fargo Valuation Range is based on a 2015 estimated EPS of $3.22 with a multiple of 21.5-22.0x.

C.H. Robinson Worldwide, Inc.. recently traded at $65.50, down 1.2 percent.