) to buy from hold because the firm thinks Roadway's operating performance has improved and its stock has underperformed other trucking stocks by 30% since the beginning of Q4 2000.
Analyst Gary Yablon said the company's $1.34 Q4 EPS was stronger than expected considering the tough freight-shipping environment. He said the stock is trading at a P/E of nine, which, given Roadway's limited history as a public company, represents a very low multiple. Yablon believes the prospect of a recession is already priced into the stock.
He sees a 2001 EPS of $3.20 and has set an upper $20s 12-month price target on the stock.