Oppenheimer analyst Scott Schneeberger maintained a Hold rating on CH Robinson (CHRW) yesterday. The company’s shares closed on Friday at $83.90.
Schneeberger wrote:
“1Q19 net revenue grew 8% y/y, exceeding expectations, and net revenue margin expanded 220bps y/y (vs. +50bps/+120bps y/y in 3Q18/4Q18, respectively), which represented a fourth consecutive quarter of expansion. This was primarily driven by NAST (+230bps y/y), which benefited from North America truckload price/ mile decreasing 5.5% y/y while truckload cost/mile decreased 8.5% y/y. 1Q19 operating income/adjusted EPS outperformed expectations, growing +17%/+15% y/ y, respectively. CHRW noted 2Q19-QTD total net revenue/day has increased ~5% y/y and comparable period truckload volume/day has decreased ~4% y/y. The company indicated more available truck capacity, leading us to infer 2018 may have represented a peak. We’re slightly modifying our 2019E adjusted EPS and maintaining a Perform rating as business conditions appear largely reflected in current valuation.”
According to TipRanks.com, Schneeberger is a 5-star analyst with an average return of 7.0% and a 59.5% success rate. Schneeberger covers the Services sector, focusing on stocks such as Service Corp International, General Finance, and XPO Logistics.
CH Robinson has an analyst consensus of Moderate Buy, with a price target consensus of $91, which is an 8.5% upside from current levels. In a report issued on May 1, UBS also downgraded the stock to Hold with a $83 price target.
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The company has a one-year high of $101.20 and a one-year low of $77.72. Currently, CH Robinson has an average volume of 1.17M.
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C.H. Robinson Worldwide, Inc. engages in the provision of freight transportation services and logistics solutions. It operates through the following three segments: North American Surface Transportation, Global Forwarding and Robinson Fresh.
