Shyft Group downgraded to Neutral from Buy at DA Davidson

DA Davidson analyst Michael Shlisky downgraded Shyft Group (SHYF) to Neutral from Buy with a $15 price target following yesterday’s announcement of the merger with Aebi Schmidt, a U.S.-European truck-equipment maker. While “largely positive on the strategic rationale of the deal,” as it broadens scale and scope for both companies, the firm views execution risks as elevated going forward given this is a multi-continent merger of equals currently without a CFO. The resulting combined company will still only have about 10.5% EBITDA margins, below many peers, adds the firm, which would like to see some progress “before turning more constructive.”