Wolfe Research analyst Scott Group downgraded Forward Air to Underperform from Peer Perform with an $80 price target after the company announced the $3.2B acquisition of Omni Logistics. Forward expects strong cash earnings accretion by year two, but material earnings dilution in 2024 is likely along with a “big increase” in balance sheet leverage, the analyst tells investors in a research note. The firm cites the stock’s “high valuation” and near-term earnings dilution for the downgrade.
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