CFRA Upgrades C.H. Robinson Worldwide (CHRW) to Buy, 'We think CHRW is likely to take share'

CFRA analyst Stewart Glickman upgraded C.H. Robinson Worldwide (NASDAQ: CHRW) from Hold to Buy with a price target of $95.00 (from $100.00).

The analyst comments "Our 12-month target of $95, cut $5, reflects a 20x multiple applied to our revised 2024 EPS estimate, slightly above CHRW's long-term historical forward average. We think cost efficiency initiatives that management is putting in place are likely sustainable even in the next upcycle and can support a better valuation. We cut our 2023 EPS estimate by $0.22 to $3.49, but lift 2024's by $0.10 to $4.74. Q3 EPS of $0.84 vs. $1.78, beat consensus by $0.04. Freight markets clearly remain depressed, but consensus expectations for 2024 suggest only a very slight improvement in revenues and margins following a 2023 cycle low. We think CHRW is likely to take share when weaker hands fold. While we do not think that fundamentals have yet reached a positive inflection point, shares are only 3% above their 52-week low, and would be more likely recover before fundamental improvement would be apparent. Shares yield 3.0%, and CHRW has also historically reduced shares outstanding by about 2.4% per year."

For an analyst ratings summary and ratings history on C.H. Robinson Worldwide click here. For more ratings news on C.H. Robinson Worldwide click here.

Shares of C.H. Robinson Worldwide closed at $81.46 yesterday.

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