Wunderlich Securities Sees Potential To Once Again Differentiate Via M&A Activity For Celadon

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In a report published Thursday, Wunderlich Securities analyst Nicholas J. Bender reiterated a Buy rating and $26.00 price target on
CeladonCGI
. In the report, Wunderlich Securities noted, “Celadon Group (CGI) has been the most active acquirer in our TL coverage universe over the last several years, and we believe this strategy has a chance to once again set the company apart from peers in a tight capacity environment. Late 2013 saw a brief flurry of consolidation, but acquisition activity has decreased materially as carriers seek to improve operations in a dynamic marketplace. Though supply tightness has once again tilted pricing power towards carriers, a deteriorating driver market and rising PT costs are hampering organic growth. We expect Celadon to resume acquisition activity in 2H14 (fiscal 1H15) after a six-month hiatus, and against this market backdrop, the strategy could allow for better than expected top- and bottom-line growth.” Celadon closed on Wednesday at $21.15.
Posted In: Analyst ColorReiterationAnalyst RatingsNicholas J. BenderWunderlich Securities
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