Raymond James downgraded C.H. Robinson Worldwide ( NASDAQ: CHRW ) to Underperform from a prior Market Perform amid increasing anxiety on macroeconomic conditions.
“We simply see earnings visibility as extremely limited into 2023 on the back of a hazy volume (macro) backdrop,” equity analyst Felix Boeschen explained. “Questions remain over the potential for non-traditional broker competition that could create an “overhang” on shares, put long-term pressure on margins, breed heightened technology spend, and/or render the model more asset intensive going forward.”
The analysis added that “a likely worsening ‘buy/re-sell spread’ in CH’s flagship NAST segment”, normalizing ocean and air freight fates, as well as decelerating contractual rates hang over the stock. These dynamics dampen any enthusiasm for a business that Boeschen said he is “holistically impressed” by.
Shares of the trucking company ticked 0.58% lower during Tuesday’s premarket trading.
Read more on the company’s latest earnings result .
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C.H. Robinson downgraded to Sell as RayJay highlights macro challenges