Analysts at BB & T Capital and at Stifel Financial Spoke with Reporters Today 9/17/2014
Analysts need permission from their supervisors to talk to reporters. They usually do not talk about YRCW because they have been burned even worse than we have as individual investors. They were given permission to talk to reporters and were positive about YRCW.
Austin Alonzo at the Kansas City Business Journal reported this afternoon paraphrasing analyst Dave Ross at Stifel:
"The bigger news for us was that (third-quarter) results should be better than we expected, implying that more of the lingering costs associated with the (second-quarter) freight surge has been worked off than we thought," the Stifel report said. "We believe that (third-quarter) volumes should be decent — although likely trailing peers — and that pricing momentum should continue as long as the industrial economy continues to be strong."
Stifel retained its "hold" rating, however, because the analysts still have long-term questions about a "looming capital expenditure bubble" and the company's "lack of a clear competitive advantage." Stifel provides investment banking and other financial services to YRC.
StreetInsider.com reports:
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.
