Stifel: Buy Echo Global Logistics On The Dip

In a report published Tuesday, Stifel analyst John G. Larkin upgraded the rating on

from Hold to Buy, while maintaining the price target at $33. The analyst believes that the almost 25 percent decline in the share price following the company reporting its earnings on August 4 is overdone "While the company reported a beat based on a change in non-GAAP reporting methodology, if one were to use the prior non-GAAP methodology, it was a slight miss. The miss, however, does not justify a 25 percent sell off, in our view," Larkin stated. The stock is now trading below the mid-point of its historical range, on an absolute basis, and at the bottom when compared to the broader S&P. While the EPS estimates for 2015, 2016 and 2017 remain unchanged, the analyst explained that the Stifel model "does not does not currently forecast the consummation of additional acquisitions, which we believe the company will continue to do given its history of tuck-ins and the guidance surrounding $200 - $300 million in acquired revenue by 2018." At the same time, the analyst expects 31.6 percent upside to the stock valuation at market close on August 17.