Echo Global Logistics shares fall after downgrade
Echo Global drops after Stifel Nicolaus cuts rating to 'Neutral,' citing stock's recent gain
NEW YORK (AP) -- Shares of Echo Global Logistics Inc., which provides supply-chain management services, tumbled Wednesday after a Stifel Nicolaus analyst downgraded the stock following recent gains in its stock price.
John Larkin lowered his rating for Echo Global shares to "Neutral" from "Buy," saying that based on his earnings expectations for the company, the fair value of the shares is $20. As a result, investors who buy shares at current prices won't benefit much, he said.
Shares of the Chicago-based freight and cargo company have gained steadily over the past three weeks, peaking at a 52-week high of $20.10 on Tuesday. Over the past year, the shares have risen about 20 percent.
The stock slid $1.21, or 6.1 percent, to $18.43 Wednesday afternoon.
If shares drop, Larkin said he might review his "Hold" rating.
