JP Morgan Remains Optimistic On UTi Worldwide

JP Morgan has published a research report on UTi Worldwide UTIW after the company reported weak volume trends that have not affected margin expansion opportunities. In the report, JP Morgan writes "UTIW's 3QF11 EPS report was broadly in line with expectations but their comments on volume trends in their air and ocean forwarding businesses were disappointing. We believe that their guidance comments regarding flat freight forwarding net revenue in 4Q may be conservative as yield trends are likely to be positive. However, we think the flat air and declining y/y ocean volumes in November highlight risk of slowing EPS for UTIW over the next several quarters." JP Morgan maintains its Neutral rating and has lowered the price target from $22 to $20. UTi Worldwide closed yesterday at $18.78.