Wells Fargo analysts lowered the price target and earnings estimates on trucking and logistics company C.H. Robinson Worldwide, Inc. (CHRW) on Monday as part of a sector wide downgrade.
The analysts lowered CHRW 2013 EPS estimates from $2.94 to $2.82, and 2014 EPS estimates from $3.33 to $3.15. Furthermore, the analysts cut their 6-12 month valuation range for CHRW shares from $53-$55 to $52-$54. This new price target range suggests a 5% to 1% downside to Friday’s closing price of $54.79.
Commenting on the firm’s sector wide downgrade of trucking companies, Wells Fargo analyst Anthony P. Gallo commented, “We see increased competition in truck brokerage and subsequent pricing pressure leading to margin headwinds and less earnings growth. We also see some ‘spillover’ into intermodal. In truck brokerage, we believe large players are more interested in growth and market share gains versus near-term earnings. We think these dynamics and other factors will in turn keep a lid on intermodal rates even as rail cost inflation continues.”
C.H. Robinson Worldwide (CHRW) shares were down 35 cents, or 0.64%, during pre-market trading on Monday. The stock is down 13.33% year-to-date.
The Bottom Line
Shares of C.H. Robinson (CHRW) have a dividend yield of 2.56% based on Friday’s closing price of $54.79 and the company’s annualized dividend payout of $1.40 per share.
C.H. Robinson Worldwide, Inc. (CHRW) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.