Goldman Sachs Downgrades C.H. Robinson Worldwide (CHRW) to Sell

Goldman Sachs downgraded C.H. Robinson Worldwide (NASDAQ: CHRW) from Neutral to Sell with a price target of $56.00 (from $58.00), saying they expect underperformance to persist. The firm prefers asset owners in a up cycle versus variable cost models, like C.H. Robinson.

"Variable cost models, like CHRWâs, tend to outperform during down cycles, due to their defensive characteristics â i.e., asset light, high returns and stable margins through the cycle," analyst Tom Kim comments. "However, in an up cycle, variable cost models tend to post less robust earnings growth, as they tend to have less leverage to pricing and volumes than do asset owners."

For an analyst ratings summary and ratings history on C.H. Robinson Worldwide click here. For more ratings news on C.H. Robinson Worldwide click here. Shares of C.H. Robinson Worldwide closed at $55.42 yesterday, with a 52 week range of $50.81-$67.93.

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