CHRW has Pricing Cushion in This Transition Period
Analyst Gallo of Wells Fargo Securities maintained his “outperform” rating for CH Robinson Worldwide Inc (NASDAQ: CHRW).
According to Wells Fargo Securities, the strength in spot market pricing in the month of November does not seem to be broad based. A recovery in volumes seems to be stronger than the pricing recovery in the month, which may help CHRW during the transition.
Wells Fargo Securities said that CH Robinson Worldwide was able to flex its cost structure, unlike several of its non-asset based peers, below the net revenue line during the recent slowdown in volumes. With 35%-40% of the expenses related to salaries and benefits fluctuating with profits and revenues, the analyst believes that CHRW has a cushion in this transition period.
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