Overview
Centaur Investments is pleased to reiterate a “Strong Buy” opinion and maintain the previously disclosed $15 price target on shares of YRC Worldwide Inc. (YRCW). This opinion is based on a reasonable fair value assessment of the company’s free cash flow generating capacity. The company’s latest earnings report continued to demonstrate strong revenue momentum and balance sheet improvement during the fourth quarter. The latest full year results included a one-time $29.3 million gain tied to the sale of an unused dock, which may be indicative of hidden value in YRC’s property assets.