Deutsche Bank Upgrades C.H. Robinson Worldwide (CHRW) to Buy; Compelling Valuation
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Price: $148.57 -0.52%
Rating Summary:
22 Buy, 14 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
22 Buy, 14 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank upgraded C.H. Robinson Worldwide (NASDAQ: CHRW) to Buy with a price target of $79.00.
Deutsche analyst said, "Over the past two years (since 4/17/10) shares of CHRW (up 13%) have underperformed the broader market (S&P 500 is up 17%) and the transports (with the IYT up 30%). Performance was constrained by 12.5% P/E multiple compression as CHRW grew EPS 26% during this period. We currently see an attractive entry point as we think investors are undervaluing CHRW’s returns, free cash flow generation, and growth opportunities. While headcount growth in 2011 negatively impacted productivity (gross profits/average employee was down 4.5% y/y in Q4 2011), the new hires should become a tailwind in H2 2012E, helping drive double-digit growth in H2 2012-13E."
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 $66.11 yesterday.
Deutsche analyst said, "Over the past two years (since 4/17/10) shares of CHRW (up 13%) have underperformed the broader market (S&P 500 is up 17%) and the transports (with the IYT up 30%). Performance was constrained by 12.5% P/E multiple compression as CHRW grew EPS 26% during this period. We currently see an attractive entry point as we think investors are undervaluing CHRW’s returns, free cash flow generation, and growth opportunities. While headcount growth in 2011 negatively impacted productivity (gross profits/average employee was down 4.5% y/y in Q4 2011), the new hires should become a tailwind in H2 2012E, helping drive double-digit growth in H2 2012-13E."
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 $66.11 yesterday.
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