UPDATE: BB&T Capital Upgrades YRC Worldwide (YRCW) to Buy

BB&T Capital upgraded YRC Worldwide (NASDAQ: YRCW) from Hold to Buy with a price target of $40.00. Analyst Thomas S. Albrecht thinks the company's turnaround efforts will be successful.

"YRCW is in the early stages of a turnaround (the risk profile is speculative), but we believe it will become profitable and unlock its operating leverage," said Albrecht.

"With labor and bank peace (both 5 year deals that go into 2019), YRCW's focus is to improve operations and customer service, which should return the company to profitability in 2015. If things play out the way we envision, significant deleveraging could occur, along with a new bank agreement that could lower its average interest expense from ~8% to ~5% by 2016. Currently, the stock is valued on an EV/EBITDA basis that could transition to a P/E basis as profitability is restored," he added.

For an analyst ratings summary and ratings history on YRC Worldwide click here. For more ratings news on YRC Worldwide click here.

Shares of YRC Worldwide closed at $27.27 yesterday.

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