2024-01-10 10:20:34 ET
Shares of Forward Air ( NASDAQ: FWRD ) fell nearly 6% on Wednesday after Wolfe downgraded the logistics services firm to Underperform from Peer Perform.
Wolfe, which set a price target of $50, said Forward was the worst performing stock in the brokerage’s transport coverage last year with significant downward EPS revisions and the announced acquisition of Omni Logistics.
The company in August last year said it will merge with Ridgemont Equity Partners-owned Omni Logistics in a cash-and-stock transaction to expand its domestic footprint.
However, the Tennessee-based company in October said it's considering exercising its right to terminate its ~$3.2 billion merger agreement with Omni Logistics.
“Wolfe doesn't see great options for FWRD from here as it expects it will either move forward with the highly dilutive Omni transaction (including much higher leverage) or pay a significant break-up fee to get out of the deal,” said Wolfe.
Seeking Alpha’s Quant rating considers the stock a Strong Sell, while Wall Street and Seeking Alpha analysts are bullish and rated it a Buy.
The stock lost over 40% in the last one year.
More on Forward Air
- Forward Air: Many And Uncertain Moving Targets
- Forward Air Is A Buy Despite Its M&A Drama
- Forward Air divests its Final Mile business
- Forward Air jumps as it considers terminating acquisition of Omni Logistics (update)
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Forward Air falls on Wolfe downgrade