Ahead Of The Bell: Analyst Upgrades Pacer
NEW YORK (AP) ¿ Pacer International Inc. is burning less cash and seeing stabilizing retail volumes, while a new agreement with its lenders should give the freight and logistics provider with sufficient liquidity, an analyst said Tuesday.
Baird analyst Jon A. Langenfeld upgraded Pacer to "Neutral" from "Underperform" in a note to investors. He also raised his price target to $4 from $3.
Shares of Pacer closed Friday at $3.69.
Langenfeld said the company's cash burn slowed in the second quarter to $2 million from $27 million the previous year. Meanwhile, domestic retail volumes rose during the same period.In addition, last month Pacer struck a new deal with its lenders to provide an amended credit facility of up to $125 million. The agreement should provide "ample near-term liquidity," Langenfeld said.
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