Wall Street analysts positive on C.H. Robinson deal; S&P more cautious
On the day after the C.H. Robinson-RXO deal was announced, Wall Street positive, S&P is cautious. The post Wall Street analysts positive on C.H. Robinson deal; S&P more cautious appeared first on FreightWaves .
Wall Street analysts expressed optimism about C.H. Robinson's acquisition of RXO, while S&P Global took a more cautious stance. The deal, valued at approximately $6 billion, was met with questions about antitrust concerns, technology integration, and legal "docket" issues. However, analysts quickly dismissed these concerns, with C.H.
Robinson CEO Dave Bozeman and CFO Damon Lee emphasizing the post-Montgomery world and the potential for flight to quality. The combined entity is expected to have a valuation of over $25 billion and will be accretive to earnings within nine months of the deal's closure. C.H. Robinson's synergies are projected to amount to $300 million, and the merger is anticipated to be mid-teens accretive to adjusted EPS in 2028.
Despite concerns over the impact on C.H. Robinson's investment-grade debt rating, ratings agencies from S&P Global and Moody's affirmed their current ratings, deeming the expanded levels as "meaningful."
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