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Investing.com - Stifel lowered its price target on Universal Logistics (NASDAQ:ULH) to $24.00 from $28.00 on Friday, while maintaining a Hold rating on the stock. The company’s shares, currently trading at $21.08, have declined over 53% year-to-date and are hovering near their 52-week low of $20.17. InvestingPro data shows the stock trading at an attractive P/E ratio of 9.2x.
The firm cited significant supply chain disruption in the automobile industry as a continuing headwind for Universal Logistics, which remains heavily leveraged to industrial America, particularly the auto sector. With a debt-to-equity ratio of 1.39 and annual revenue of $1.67 billion, the company faces challenges managing its significant debt burden while maintaining its 15-year streak of consistent dividend payments.
Stifel noted that Universal Logistics has undergone significant transformation following major acquisitions in LINC Logistics and Westport, with successful corporate streamlining and reorganization leading to stabilized margins and a resumption of acquisition activity.
The company’s deal flow has been relatively small so far, but Universal Logistics aims to eventually diversify its full-service logistics business across multiple industries to reduce its historical dependence on the auto industry.
Despite the lowered price target, Stifel indicated that the stock offers "meaningful potential upside for the patient or flexible investor," especially if the company is taken private or sold, though its limited float and small market cap of $555 million make it unsuitable for all investors. For deeper insights into ULH’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.
In other recent news, Universal Logistics Holdings reported its second-quarter 2025 earnings, which fell short of analysts’ forecasts. The company posted earnings per share of $0.32, missing the anticipated $0.34, and reported revenues of $393.8 million, which was below the projected $398.5 million. Stifel, an investment firm, responded by lowering its price target for Universal Logistics from $29.00 to $28.00, while maintaining a Hold rating on the stock.
Additionally, Universal Logistics announced an increase in its credit facility, raising the maximum revolving credit amount by $100 million to a total of $500 million. This amendment also allows a subsidiary of Universal to borrow up to $200 million through a potential credit tenant lease financing transaction. The proceeds from this financing are earmarked for repaying outstanding indebtedness and partially prepaying revolving loans. These developments reflect recent strategic financial adjustments by the company.
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