There’s a lot to be optimistic about in the Services sector as 2 analysts just weighed in on TravelCenters (TA) and CH Robinson (CHRW) with bullish sentiments.
In a report released yesterday, Bryan Maher from B.Riley FBR reiterated a Buy rating on TravelCenters, with a price target of $9. The company’s shares closed yesterday at $3.57, close to its 52-week low of $3.35.
“We have been aware, through discussions with investors for many years, that there was a preference for the change from an LLC to a corporation (c-corp) and we view the conversion as a net positive. This is mainly due to the fact that it will enable the company to be eligible for possible index inclusion at some point down the line, which should benefit the stock price. However, we were a bit surprised by the size of the reverse stock split (1:5). We know that there are margin restrictions on lower priced shares, but we believe that a 1:2 or 1:3 reverse split would have solved that problem. In light of this, we will look for additional color from management as to how they arrived at the 1:5 figure when the company reports 2Q19 earnings on Monday, August 5, 2019.”
According to TipRanks.com, Maher is a 1-star analyst with an average return of -0.2% and a 51.6% success rate. Maher covers the Financial sector, focusing on stocks such as Industrial Logistics Properties Trust, Senior Housing Properties Trust, and Office Properties Income Trust.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for TravelCenters with a $9 average price target.
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CH Robinson (CHRW)
Cowen & Co. analyst Jason Seidl maintained a Buy rating on CH Robinson today and set a price target of $106. The company’s shares closed yesterday at $84.77.
According to TipRanks.com, Seidl is a top 100 analyst with an average return of 14.9% and a 74.6% success rate. Seidl covers the Services sector, focusing on stocks such as Covenant Transportation Group, Expeditors International, and Echo Global Logistics.
Currently, the analyst consensus on CH Robinson is a Hold with an average price target of $88.44.
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