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UBS Maintains a 'Buy' on Swift Transportation (SWFT); Raising Numbers - Still Top Small Cap Pick

January 27, 2012 12:44 PM EST
SWFT Hot Sheet
Rating Summary:
    14 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 7 | New: 26
UBS maintains a 'Buy' on Swift Transportation (NYSE: SWFT) price target raised from $13.50 to $15.50.

UBS analyst says, "Investment thesis: quality results + delevering = valuation convergence: The recent moderation in macro fears combined with some incremental balance sheet delevering at Swift has largely eliminated the “fear discount” in the stock, and two strong quarterly results now have catalyzed some outperformance vs. the market. This remains our thesis, and while the first part is somewhat macro-dependent we have high conviction Swift can continue to make the case that its overall “quality” is closer to its peers (Werner (Nasdaq: WERN), Knight (NYSE: KNX) & Heartland Express (Nasdaq: HTLD)) than its valuation implies, causing the latter to continue to correct higher."

UBS raises FY12 EPS estimate from $0.90 to $0.93 and FY13 from $1.05 to $1.10.

For an analyst ratings summary and ratings history on Swift Transportation click here. For more ratings news on Swift Transportation click here.

Shares of Swift Transportation closed at $11.10 yesterday, with a 52 week range of $5.39-$15.57.


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