This trucking stock is poised to stage a comeback, Jefferies says

C.H. Robinson is likely to rebound as it undergoes a broad business transformation, according to Jefferies. The investment firm upgraded the transport name to buy from hold. It also hiked its price target on shares to $200 from $195, suggesting 16% upside from Tuesday's close. "We came away … with higher conviction in CHRW's technology and productivity transformation," analyst Stephanie Moore said Wednesday in a note to clients. "The company's investment-grade balance sheet and strong [free cash flow] generation give it the financial flexibility to pursue M & A opportunistically while continuing to invest in technology and return capital to shareholders." C.H. Robinson has declined nearly 9% over the past three months, largely due to higher truckload spot rates that have pressured margins. That has led the stock to underperform its transport peers over the past several months, "creating what we see as an attractive entry point and a valuation setup that is hard to ignore," Moore wrote. CHRW 3M mountain Shares have shed about 9% over the past three months. The analyst noted the company is undergoing a technological and productivity transformation, which includes an overhaul of its enterprise architecture. That revamped structural blueprint can already support 10-times volume growth without requiring much additional headcount or other investments into other kinds of support — which should give C.H. Robinson Worldwide an edge against its competitors, according to Jefferies. …