CS First Boston raised its estimate on Pacer International (PACR ).
Analyst Gary Yablon says first-quarter earnings per share were 11% higher than his estimate and the consensus estimate of 18 cents. He says the company plans to refinance much of its outstanding debt, which should positively impact 2004 earnings per share by 10 cents.
Yablon says the trucking transportation company should be able to grow earnings per share through a mixture of revenue growth, margin improvement, and de-levering. He raised the 90 cents 2003 earnings per share estimate to $1.00, and sees $1.16 for 2004.
He doesn't think sustained improvements are leading to higher growth, and he thinks returns are already reflected in Pacer's current price. Yablon raised his 12-month target to $20, and rates the shares as outperform.