C.H. Robinson rallies on analyst’’s note
published: cw 25, 2006 in Logistics & ShippingJon A. Langenfeld of Baird upgraded logistic service provider C.H. Robinson Worldwide to “Neutral” from “Underperform,” noting that the valuation of its stock has become more attractive in recent weeks.
The company’’s shares have shed 19 percent since hitting a 52-week high of $53.13 on April 11. On April 25, the company reported a leap in first-quarter profit of 39 percent, which was driven by volume growth in its trucking business.
Langenfeld foresees further growth ahead for the company, despite the risks of increased competition, industrywide consolidation, and the company’’s international operations, which are in the early stages of development. Langenfeld also noted that the company must acquire others to grow and that the strategy can be risky.
“While the long-term growth picture looks good, we believe the near-term stock valuation already reflects it,” Langenfeld said in a research note.
Shares of C.H. Robinson Worldwide rose $1.54, or 3.5 percent, to $44.82 in afternoon trading on the Nasdaq.
Source: AFX
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