Markets & Finance

Morgan Stanley Cuts EGL to 'Underweight'


Morgan Stanley downgraded EGL Inc. (EAGL) to underweight from equal-weight.

Analyst James Valentine believes EAGL stock reflects a quick return to profitability levels of the past, something he views as unlikely given the secular shift toward lower-cost ground transportation. He thinks EAGL stock has overshot fair valuation levels to the point where it will be tough to outperform its peers.

He notes that in a survey he recently conducted, shippers indicated an intent to continue the moving of non-emergency shipments to ground transport even when the economy improves, as visibility into supply chains advances. He says customers also say EAGL's service is deteriorating.


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus