Stifel Nicolaus Calls Recent Rise in YRC Worldwide (YRCW) Shares Not Realistic

Shares of YRC Worldwide (Nasdaq: YRCW) are finally correcting Tuesday following a six-day run up which added more than 110 percent to the company's market value. The stock is currently down 22.5 percent to $1.23.

Investors may be taking profits this afternoon following a bearish note from an analyst at Stifel Nicolaus earlier. The firm's David Ross argues the recent rally is not "realistic" and sees the stock continuing lower over the course of July.

Ross believes YRC has "no sustainable competitive advantage in its market" and also notes the company's National unit is the least profitable among publically-traded less than truckload companies. The analyst points out current valuation suggests a post-restructuring equity value near $2.7 billion, above both Con-way (NYSE: CNW) and Old Dominion Freight (Nasdaq: ODFL).

Stifel Nicolaus maintains a Sell rating on shares of YRC Worldwide.

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