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Bank of America lowered its rating on C.H. Robinson Worldwide (NASDAQ:CHRW) to Neutral from Buy on Wednesday in response to the company’s termination of Bob Biesterfeld as CEO.
Analyst Ken Hoexter said the move likely suggests the CHRW board’s efforts to accelerate strategic initiatives while also remaining focused on reducing costs and growing volumes. However, Hoexter also pointed to potential discord within C.H. Robinson’s ranks and the industry’s high demand for technology-related talent in general.
In reaction to the development, BofA clipped its price objective on CHRW to $95 from $104 on a lowered P/E of 16X due to the absence of a permanent CEO and lower overall freight demand.
Shares of C.H. Robinson Worldwide (CHRW) slipped 2.38% in premarket trading on Wednesday after falling 1.40% on Tuesday off the CEO news.