UPDATE: Sterne Agee Raises PT on Quality Distribution from $16 to $18

Sterne Agee has published a report on Quality Distribution QLTY raising the price target by two dollars. In the report, Sterne Agee wrote, "While revenue rose 7% YoY to $190m, which was $4 million above our expectations, it was the 34% improvement in operating income that led to the EPS surprise; driven by cost cutting, lower insurance costs, fleet rationalization and improved processes, this is likely to continue to benefit results in future quarters. Incremental margins of 33% exceeded 1Q's 14% and our 21% expectation." Sterne Agee rated Quality Distribution a BUY with a price target raised from $16.00 to $18.00. Quality Distribution closed Tuesday at $12.60.