http://biz.yahoo.com/ap/060913/secto...king.html?.v=2
Sector Snap: Trucking Seen Under Pressure
Wednesday September 13, 4:19 pm ET
Bank of America Initiates Coverage of Trucking Sector With Several "Sell" Ratings
NEW YORK (AP) -- Bank of America on Wednesday initiated coverage on several trucking companies, saying the sector's profits will be under pressure as volumes decelerate.
The bank's Scott D. Flower started the airfreight and surface transportation sector, which also includes railroad and freight shipping companies, at "Market-Weight," citing the possibility of economic uncertainty toward the end of the year.
Flower rated Swift Transportation Co. "Neutral" with a $23 price target, saying since the arrival of new leadership at the company, it had become more focused and disciplined.
"The stock has come off the most sharply of any of the truckload companies that we cover in the recent market correction, roughly 30 percent from the stock's highs during 2006," Flower wrote in a note to investors.
"Yet, based on our concerns relative to the truckload sector and where we are in the economic cycle, we think that, near term, the stock will remain under some pressure."
Swift shares closed Wednesday up 22 cents, at $24.86 on the Nasdaq.
Flower was
less positive about other trucking companies, rating
J.B. Hunt Transport Services Inc., Con-Way Inc. and Werner Enterprises Inc. all at "Sell," saying the companies will have to deal with a moderating economy in the second-half of the year and face tough comparisons.
J.B. Hunt shares closed up 16 cents, at $20.42, while Werner shares ended up 8 cents, at $19.51, both on the Nasdaq.
Con-Way shares closed down 11 cents, at $47.50 on the New York Stock Exchange.
WERNER--BOUGHT SWIFT ???
