Already a Bloomberg.com user?
Sign in with the same account.
Bear Stearns upgraded USF Corp. (USFC
) to outperform from peer perform.
Analyst Edward Wolfe sees a gradual turnaround into the transportation company's improving less-than-truckload fundamentals. He notes shares are down 9.1% since USF announced the closure of its Red Star unit on May 23. While he still sees risk, he senses concerns about Teamsters or customers retaliating against USF in other regions have not yet materialized, rather, Teamsters have acted cautiously since losing 1,600 jobs in one day.
Wolfe says less-than-truckload and truckload demand and pricing remains exceptional through May, but unlike truckload providers, less-than-truckload carriers aren't suffering from the same revenue and cost constraints for drivers and fuel. He set a $38 year-end 2005 target.