Jesup & Lamont Upgrades Dynamex (DDMX) to Buy

October 16, 2009 9:50 AM EDT

Jesup & Lamont upgrades Dynamex Inc (Nasdaq: DDMX) to Buy. Price target $24.

Jesup analyst says, "We believe our estimate could be conservative based on the fact that Amazon (Nasdaq: AMZN) announced it is offering same-day delivery service in seven cities to its customers for $18.99 using Dynamex and A1 (a private company)...This has the potential to be a substantial account for DDMX; we estimate it will add several million dollars to revenue and certainly gives us a higher degree of confidence in the outlook for the January quarter...The company is on a July fiscal year and will report its October (first fiscal quarter) results in mid December. We are estimating earnings of $0.23 vs. $0.30 last year and the consensus estimate of $0.26...We believe this transaction will not affect the current quarter as much as the next quarter, where we are estimating EPS of $0.28 vs. $0.24 and the consensus estimate of $0.23. Our preliminary outlook for the July 2011 fiscal year is for EPS of $1.50, which could also be conservative, depending on the success of the Amazon program and how much of an economic recovery there is in the US and in Canada...Our updated earnings model assumes a modest amount of revenue for the Amazon same day delivery program, but it could be quite significant if the program is successful."

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