Piper Jaffray Neutral On UTI Worldwide

Piper Jaffray has a Neutral rating and a $24 price target on shares of UTI Worldwide Inc. UTIW. In a note to clients, Piper Jaffray writes, "We attended UTIW's Investor Day hosted in New York City yesterday where management provided incremental detail on its long term strategic "Client as One" plan. Much of the focus was on the UTIW's "Transformation" in which the company expects to rationalize costs mainly across its global Freight Forwarding platform over a five year period. We give management credit for providing a time line and quantifying targeted plan costs and net benefits however we see meaningful earnings risk from Transformation implementation as UTIW looks to build and install a brand new operating system globally and essentially integrate numerous legacy acquisitions used to form the company. Further, the stock appears to be fairly valued at 21.7x our forward EPS estimate. We are retaining our Neutral rating." Shares of UTIW lost 27 cents yesterday to close at $19.83.