Dahlman Rose Starts Swift Transportation (SWFT) at Hold; Expectations Look A Little Too High

Dahlman Rose initiates coverage on Swift Transportation (NYSE: SWFT) with a Hold.

Analyst, Jason H. Seidl, said, "We believe that the long-term outlook is favorable for Swift Transportation, as the company leverages a potential truckload (TL) capacity crunch and works to boost its exposure to key growth areas in freight transportation, including intermodal and Mexico cross-border operations. However, we are somewhat cautious about the near-term prospects of the industry, as the economic softness has pressured pricing to the 2-3% range in 1H12, down from 4%+ previously. Additionally, the recent rise in diesel prices could weigh on TL earnings in 3Q12. The Street's near-term EPS expectations for SWFT could prove too high."

For an analyst ratings summary and ratings history on Swift Transportation click here. For more ratings news on Swift Transportation click here.

Shares of Swift Transportation closed at $8.39 yesterday.

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