Roth Capital Maintains a Buy Rating on Radiant Logistics

By George MacDonald

In a report issued on February 19, Jeff Martin from Roth Capital maintained a Buy rating on Radiant Logistics (NYSE MKT: RLGT), with a price target of $5.50. The company’s shares closed last Friday at $4.53.

Martin wrote, “We are optimistic on the Wheels Group acquisition, which brings scale, expanded service capability and investor attention, in our opinion. If management can execute to its $29mm adjusted EBITDA midpoint guidance in FY16 (June), shares could trade toward 12x that figure, or $6-6.50, depending upon how quickly debt is repaid. More acquisitions appear imminent, for which we look for price discipline in order for shares to continue to rally . Maintain Buy rating and raise PT to $5.50.”

Radiant Logistics has an analyst consensus of Hold.

Based on Radiant Logistics` latest earnings report from December 31, the company posted quarterly revenue of $105.9M and quarterly net profit of $838.7k. In comparison, last year the company earned revenue of $84.14M and had a net profit of $263.6k.

According to TipRanks, Martin is a 4-star analyst with an average return of 11.7% and a 61.9% success rate. Martin covers the Services sector, focusing on stocks such as Barrett Business Services, U.S. Auto Parts Network, and Franklin Covey Company.

Radiant Logistics Inc is a transportation and logistics services company providing customers domestic and international freight forwarding services through a network of Company-owned and strategic operating partner locations.