Citigroup downgraded C.H. Robinson Worldwide ( NASDAQ: CHRW ) to a Neutral rating after having the freight transportation stock slotted at Buy.
The firm noted that CHRW is typically a good late-cycle stock with its core NAST business benefiting as spot TL rates decline at a faster rate than contract TL rates, but sees risk in the near term due to the heavy exposure to spot ocean rates.
"With ocean rates down substantially, we see risk to GFAC's profits, which have more than tripled through the pandemic. So, while 3Q could be good, we think shares could lag."
Citi cut its price target on CHRW to $107 from $123.
Shares of CHRW fell 3.25% in early trading on Friday to $94.43.
The Seeking Alpha Quant Rating on CHRW is still flashing Strong Buy.
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C.H. Robinson Worldwide falls after Citi points to near-term profit risk