UBS Maintains a 'Buy' on Swift Transportation (SWFT); Top Pick for the Brave
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Price: $29.49 --0%
Rating Summary:
14 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 14 | New: 20
Rating Summary:
14 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 14 | New: 20
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UBS maintains a 'Buy' on Swift Transportation (NYSE: SWFT), price target lowered from $17 to $13.50.
UBS analyst says, "Insiders have it right; Buy it down here - The August market meltdown has been notably unkind to the transports, but the 42% contraction in SWFT’s multiple (from 16x to 9.3x NTM P/E) since July 15th looks like an overreaction that should be bought. The stock looks attractive in all but the worst case scenario and the recent raft of insider buying (six executives including the CEO) should help ease investor fears and extend yesterday’s gains."
"Buying a truck stock into a weaker economy may seem counter-intuitive and valuation by itself is rarely compelling. However, we believe it’s ultimately bankruptcy fears that cut this stock in half, and we think the current insider buying is the game changer that is dramatically shifting investor expectations away from the worst case scenario. As this fear subsides so will the deep discount to SWFT’s comps. In effect, this may be the biggest dead cat bounce we’ve ever seen."
For more ratings news on Swift Transportation click here and for the rating history of Swift Transportation click here.
Shares of Swift Transportation closed at $7.96 yesterday.
UBS analyst says, "Insiders have it right; Buy it down here - The August market meltdown has been notably unkind to the transports, but the 42% contraction in SWFT’s multiple (from 16x to 9.3x NTM P/E) since July 15th looks like an overreaction that should be bought. The stock looks attractive in all but the worst case scenario and the recent raft of insider buying (six executives including the CEO) should help ease investor fears and extend yesterday’s gains."
"Buying a truck stock into a weaker economy may seem counter-intuitive and valuation by itself is rarely compelling. However, we believe it’s ultimately bankruptcy fears that cut this stock in half, and we think the current insider buying is the game changer that is dramatically shifting investor expectations away from the worst case scenario. As this fear subsides so will the deep discount to SWFT’s comps. In effect, this may be the biggest dead cat bounce we’ve ever seen."
For more ratings news on Swift Transportation click here and for the rating history of Swift Transportation click here.
Shares of Swift Transportation closed at $7.96 yesterday.
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