UPDATE: Deutsche Bank Color On CHRW Target Increase

Deutsche Bank, which raised its PT on shares of CH Robinson Worldwide Inc. (NASDAQ: CHRW), is providing some color on the stock.

“We believe investors and sell-side Consensus have been overly worried about margin compression when they should be focused on yield improvement and transactional vols,” Deutsche Bank writes. “After adjusting our model for higher personnel and SG&A expense, it still moved higher on better net margins and vol growth.

“Revised 2011 & 2012 EPS are now $2.73 and $3.32 up from $2.70 and $3.26. Our price target is now $88 based on an unchanged target multiple of 26.5x our new 2012 EPS estimate. Risks include increased government regulation, potential transportation gross profit margins compression, and sourcing sufficient capacity.”

CH Robinson Worldwide closed Tuesday at $79.24.