YRC Worldwide (YRCW) Credit Amendment Removes Uncertainty, BB&T Capital Says

BB&T Capital analyst Thomas Albrecht reiterated a Buy rating and $40 price target on YRC Worldwide (NASDAQ: YRCW) after the company launched a credit agreement amendment to revise its leverage ratio from Q3'14 through Q4'16. YRC projected that it would be in compliance with its old leverage covenant ratio of 5.0x.

Albrecht commented, "We believe this proactive move is smart, removes significant uncertainty from the market and allows employees and investors to focus on driving operational and yield improvements. With the stock having gone from the upper $29.17 in early July to under $20 and with a common sense set of operational initiatives being rolled out, we reiterate our Buy rating."

The firm's 2015E and 2016E remain $1.15 and $3.00, while they forecast a loss of ($0.01) for Q3'14.

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 $19.80 yesterday.

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