Deutsche Bank Has Hold Rating On Arkansas Best After Truck Tonnage Report (ABFS)

Deutsche Bank is out with a research report on the truck tonnage report that was released for July. In the report, it shows that tonnage was up 7.4% year over year. It discusses some of the companies associated with the report and rates Arkansas Best Corporation ABFS a Hold. In a note to clients, Deutsche Bank writes, "We expect truck tonnage to remain strong through at least October as shipping lines are fully booked through Q3 2010 and CA imports continue to show y/y strength (CA imports up 25% y/y in July). With a 0.75 correlation to CA import activity on a one-month lag, truck tonnage is poised to see strength through at least October given strong shipping line bookings. We are selective buyers of trucking stocks that present more opportunities for growth. Our favorite way to play positive trends in the TL/intermodal space is through Buy-rated JBHT as we expect volume growth and improved pricing to drive strong y/y OR improvement in 2010 and 2011. On the LTL side, we are Buyers of CNW and ODFL as we expect LTL yields to improve." Shares of ABFS gained 71 cents yesterday to $20.33, good for a gain of 3.62%.