Jefferies & Co started coverage of a slew of U.S. transportation and logistics companies, including FedEx Corp , United Parcel Service and Canadian Pacific Railway, with a “buy” rating, citing improved pricing.
The brokerage also said earnings of railroad operators Canadian Pacific Railway, CSX Corp , Union Pacific Corp and Norfolk Southern Corp have grown at about 14 percent for a decade and expects them to benefit from rising rates and volumes.
It set price targets of $77 for Canadian Pacific Railway, $75 for CSX Corp, $108 for Union Pacific Corp, and $74 for Norfolk Southern.
Jefferies said earnings of parcel delivery companies FedEx and United Parcel Service could benefit from margin-growth in international sales and better less-than-truckload pricing.
It set price targets of $112 for FedEx and $89 for UPS.
The brokerage set a price target of $50 for freight transport company J.B. Hunt Transport Services Inc , citing expectations of continued growth in intermodal revenue. (Reuters)