FMP

FMP

Enter

Baird analysts increased their price target for Forward Air (NASDAQ:FWRD) to $17 from $14 while maintaining a Neutral rating on the stock. The analysts noted th

Baird Raises Forward Air Price Target, Maintains Neutral Rating

- (Last modified: Jul 4, 2024 4:15 AM)

twitterlinkedinfacebook
blog post cover photo

Image credit: FMP

Baird analysts increased their price target for Forward Air (NASDAQ:FWRD) to $17 from $14 while maintaining a Neutral rating on the stock.

The analysts noted that Forward Air remains a complex situation as the new management team, led by CEO Shawn Stewart and interim CFO Jamie Pierson, works to define the company's strategy following the Omni acquisition and de-leverage its balance sheet. Despite ongoing operating losses expected over the next few quarters, the company should benefit from recent improvements in global air and ocean freight rates, which could help reduce cash burn.

Reports indicate Forward Air has recently implemented headcount reductions in sales and technology functions to enhance profitability. While transparency in leverage calculations is expected to improve, it appears the company will remain compliant with covenants following adjustments and a Q1 adjusted EBITDA restatement.

Although the company's shares have rebounded from lows and new management has stabilized the situation, clarity on long-term earnings potential is expected to take more time. Forward Air is anticipated to provide full-year 2024 guidance alongside Q2 reporting, and Q1 results were impacted by one-time costs, some of which will persist in Q2.

Management's focus remains on improving profitability and capturing synergies, with cost synergies now expected to total $73.5 million, slightly down from the initial $75 million projection due to less volume-driven leverage and lower technology-related savings, offset by greater savings from facilities consolidation and SG&A. Forward Air recognized approximately $7.5 million of synergies in Q1, and major operational synergies, including linehaul and facility consolidation and PUD insourcing, are either underway or complete. Encouragingly, April performance saw shipments per day increase by about 4% year-over-year, and revenue per shipment ex-fuel rose by 2% year-over-year for the LTL business, with consolidated revenue increasing 6% month-over-month, compared to normal seasonal contraction.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title
FMP

FMP

Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
twitterlinkedinfacebookinstagram
2017-2024 © Financial Modeling Prep