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Investing.com - Stifel has raised its price target on Forward Air (NASDAQ:FWRD) to $32.00 from $30.00 while maintaining a Buy rating on the stock. The stock, currently trading at $20.82, has experienced significant volatility, with InvestingPro data showing a 33.2% gain over the past six months despite recent weakness.
The firm attributes recent weakness in Forward Air shares to "waning confidence in a protracted sale process" and macroeconomic pressures, specifically renewed trade tensions between the United States and China.
Despite these challenges, Stifel remains "generally constructive" on the opportunity presented by Forward Air, suggesting that "an imminent take-private or sale event is likely."
From a fundamental perspective, Stifel believes the company has completed most of the operational merger integration work and has sound business strategies in place. The firm expects Forward Air to generate relatively strong free cash flow in a mid-cycle environment.
Stifel acknowledges that Forward Air faces "elevated risk versus peers" due to its "outsized exposure to trade tensions," particularly compared to other companies in the Less-than-Truckload sector, and notes there is still integration work remaining. According to InvestingPro, the company’s overall financial health score is currently rated as WEAK, with 8 additional key insights available to subscribers through the comprehensive Pro Research Report.
In other recent news, Forward Air Corporation reported its second-quarter results, which included a slight EBITDA beat compared to consensus estimates. The company managed to improve its EBITDA margins quarter-over-quarter through pricing optimization and discretionary expense management, despite challenging freight market conditions. In another development, Forward Air is executing a nationwide automotive replenishment program through its Omni Logistics division, partnering with a global automaker to manage parts distribution across the United States and Canada. Leadership changes were also announced, with Jason Ringgenberg appointed as interim Chief Information Officer following the resignation of Joseph M. Tomasello. Additionally, board member Michael B. Hodge resigned for personal and professional reasons, reducing the board to seven members. Benchmark reiterated its Hold rating on Forward Air as the company completes its integration with Omni and focuses on streamlining operations. Meanwhile, Susquehanna raised its price target for Forward Air to $43, maintaining a Positive rating and highlighting the potential for a sale of the business.
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