UPDATE: Stifel Upgrades Roadrunner Transportation Systems on Attractive Valuation

In a report published Wednesday, Stifel analyst David Ross upgraded the rating on Roadrunner Transportation Systems (NYSE: RRTS) from Hold to Buy, and named a $31.00 price target.

In the report, Stifel noted, “We are upgrading the shares of Roadrunner from Hold to Buy, as our target price of $31 now provides sufficient upside from yesterday's close. As we discussed in our 3Q13 earnings note, our Hold rating on Roadrunner was largely premised on valuation, and, all else equal, we view the sub-$25 range as an attractive entry point. The company missed Street estimates last quarter, but partially due to extenuating circumstances, like work stoppages at the Port of Oakland. Fundamentally, the company's LTL division continues to take market share and improve its density and non-asset-based competitive advantages, and its scrupulous, bolt-on acquisition strategy (so far) continues to add to the service portfolio and increase its salesforce leverage with limited integration risk. Further upside potential could result from continued acquisitions, assuming no departure from current strategy and execution.”

Roadrunner Transportation Systems closed on Tuesday at $24.96.