Forward Air price target lowered to $55 from $80 at Stifel

Stifel lowered the firm’s price target on Forward Air to $55 from $80 and keeps a Hold rating on the shares after the company announced a settlement with Omni that amends the terms of their deal and will still see the two companies complete their planned merger. While the terms of the deal are now “slightly more favorable,” most of the firm’s core concerns about the deal – including billions in additional debt and the associated interest burden, the need to further rightsize the portfolio to address the debt, the potential for long-term customer attrition, the “sustainability and veracity” of Omni’s earnings and potential shareholder suits against the combined entity – remain, the analyst tells investors.