NEW YORK (TheStreet) -- Shares of Expeditors International of Washington Inc. (EXPD) - Get Expeditors International of Washington, Inc. Report are down 1.98% to $43.51 in early afternoon trading after the company was downgraded to "underperform" from "neutral" at Credit Suisse earlier on Wednesday.
The firm set a price target of $41 for the logistics services provider, down from its previous mark of $43.
Credit Suisse said it lowered the company's rating because the company faces multiple growth headwinds.
"We believe that a combination of structural and cyclical headwinds will crimp earnings growth at EXPD for the foreseeable future," said analysts at Credit Suisse.
Separately, TheStreet Ratings team rates EXPEDITORS INTL WASH INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXPEDITORS INTL WASH INC (EXPD) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, growth in earnings per share and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- EXPD's revenue growth has slightly outpaced the industry average of 5.0%. Since the same quarter one year prior, revenues slightly increased by 6.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- EXPD has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, EXPD has a quick ratio of 2.29, which demonstrates the ability of the company to cover short-term liquidity needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Air Freight & Logistics industry and the overall market, EXPEDITORS INTL WASH INC's return on equity exceeds that of both the industry average and the S&P 500.
- EXPEDITORS INTL WASH INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, EXPEDITORS INTL WASH INC increased its bottom line by earning $1.70 versus $1.57 in the prior year. This year, the market expects an improvement in earnings ($1.85 versus $1.70).
- You can view the full analysis from the report here: EXPD Ratings Report