Deutsche Bank Lowers TrueBlue PT To $20, Rates Buy (TBI)

Deutsche Bank lowered its TrueBlue TBI price target to $20 from $24 and rated TrueBlue as a Buy in a research report published today. In the report, Deutsche Bank states, "We are happy that TBI will offset most, if not all, of its higher unemployment taxes and lower HIRE Act benefits with higher pricing. But for now gross margins are just flat YoY, which is slightly disappointing versus our hopes. Also not previously forecast is the higher incremental costs needed in 2011 – but this should drive volumes later. We hope this new lower bar for 2011 turns out to be beatable." Shares of TrueBlue were at $18.77 in Thursday after hours trading, down 0.64% from Thursday's market close.