Deutsche Bank Upgrades C.H. Robinson Worldwide (CHRW) to Buy; Market Volatility A Positive For CHRW

Deutsche Bank upgraded C.H. Robinson Worldwide (NASDAQ: CHRW) to Buy. PT increased from $79 to $86.

Deutsche analyst says, "We believe the market is missing the strength of CHRW's business model and how its business model reacts to a tightening of TL capacity, rising fuel prices, and increasing TL rates. Shares of CHRW are now trading at a 1.5% discount to its 10-year average P/E multiple (26.9x) and we see EPS growth accelerating in 2011-12E as the company should benefit from rising volumes as shippers increasingly leverages CHRW's brokerage network as the large asset-based transportation capacity is now limited."

"While we have lowered our Q1 2011 EPS estimate to $0.61 (vs. Consensus of $0.60) due in part to larger-than-expected margin compression, our sense is that stronger-than-previously-expected volumes will drive solid y/y net margin growth in Q1. We have tweaked our 2011-12E EPS estimates to $2.70 and $3.26, respectively, from $2.73 and $3.16."

For more ratings news on C.H. Robinson Worldwide click here and for the rating history of C.H. Robinson Worldwide click here.

Shares of C.H. Robinson Worldwide closed at $75.39 yesterday.

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