Deutsche Bank Sets A New Sell Rating On Trueblue Shares

Deutsche Bank’s Kevin McVeigh believes Trueblue Inc TBI shares have “rallied too much,” rising 25 percent since the company lowered its guidance in Q1.

McVeigh initiated coverage of the company with a Sell rating and price target of $20.

Execution Needed

Mentioning that he liked Trueblue’s business model, the analyst noted that “the Street has to become more comfortable with estimates — which we believe need to come down and require management execution — before we are more balanced on the TBI stock.”

Related Link: Deutsche Bank Initiates On Assignment Shares With A Buy Rating

McVeigh also believes the company could be one of the first to witness a downturn, although it is also likely to be the first to come out of a downturn, given that Trueblue has peak earnings in 2006.

Closer To Peak

“Our cycle analysis suggests we are closer to the peak than the trough. That said, branches at Trueblue are essentially variable cost due to the ease with which it takes to close them,’ the analyst stated, while adding, “As such, Trueblue can preserve earnings if things get much tougher than we expect.”

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!
Posted In: Deutsche BankKevin McVeighAnalyst ColorShort IdeasInitiationAnalyst RatingsTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.