Nomura Securities Starts Expeditors Int'l (EXPD) at Neutral

Nomura Securities initiates coverage on Expeditors Int'l (NASDAQ: EXPD) with a Neutral rating and a price target of $47.00.

Analyst Matt Troy commented, "As a pure-play international freight forwarder, Expeditors’ diverse portfolio of ocean, airfreight and customs brokerage services is singularly exposed to the secular trend of growth in international trade. The ultimate theme-based play on globalization, EXPD was able to increase earnings at a 21% CAGR in the decade leading up to the Great Recession while generating average ROIC of 23%. Yet in the five years since the current economic recovery began, earnings have stagnated and shares have vastly underperformed as the growth engine of EXPD’s business model has become more cyclical than secular, the frenetic pace of offshoring matures, and the rate of trade growth more closely correlates to global GDP. This coupled with an uncertain pace of U.S. economic recovery leads us to initiate at a discounted $47 target price and Neutral rating."

For an analyst ratings summary and ratings history on Expeditors Int'l click here. For more ratings news on Expeditors Int'l click here.

Shares of Expeditors Int'l closed at $44.67 yesterday.

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