Jefferies Lowers Price Target on Quality Distribution to $10 (QLTY)

Jefferies is out with its report today on Quality Distribution QLTY, lowering its price target from $11 to $10. In a note to clients, Jefferies writes, "Sentiment remains overwhelmingly positive on QLTY (we're the only Hold rating), while the shares only trade a little more than $1 million in value a day. That makes it hard to recommend the stock to institutional money right now. Turnarounds are rarely linear and our sense is that we'll get a more attractive entry point at some point. Our downwardly-revised year-end 2011 price target of $10 (previously $11) is based on an unchanged year-end 2011 P/E target of 14.0x on our downwardly-revised 2012e EPS estimate of $0.71 (previously $0.81)." At the time of posting, shares of QLTY were trading at $9.08, down 2.89% from Tuesday's close.