UPDATE: Deutsche Bank Upgrades Arkansas Best Corporation to Buy, Raises PT Following Teamsters Agreement

In a report published Tuesday, Deutsche Bank analyst Justin Yagerman upgraded the rating on Arkansas Best Corporation

from Hold to Buy, and raised the price target from $11.00 to $20.00. In the report, Yagerman noted, “We are upgrading shares of ABFS to Buy this morning as its tentative agreement with the International Brotherhood of Teamsters (Teamsters) removes a big uncertainty in the shares that we believe will provide the basis for strong margin improvement in ABF Freight and help the company return to profitability. Although the shares are up over 29% this morning (vs. an essentially flat S&P 500), we see further upside as investors digest the potential for cost savings (from wage and benefit concessions) as well as productivity improvements stemming from more flexible work rules. Accordingly, we have upgraded shares of ABFS from Hold to Buy.” Arkansas Best Corporation closed on Monday at $14.73.