UPDATE: Citigroup Reduces PT to $8 on Arkansas Best on Labor Cost Headwinds

Citigroup maintained Arkansas Best ABFS at Neutral but reduced its price target from $10 to $8. Citigroup noted, "We maintain our Neutral rating, but lower our price target to $8 from $10, as we apply a 3x target multiple (from 3.5x) on a lower 2013 estimate. Our lower multiple reflects deepening concern over its structurally higher costs due to its worst-in-class labor arrangement. Its possible progress can be made in its current Teamster negotiation, but we believe material concessions may not be achievable without real financial distress, putting it in the position of not being distressed enough to drive changes." Arkansas Best closed at $7.25 on Tuesday.