Bear Stearns sees a buying opportunity for UTI Worldwide (UTIW ).
Analyst Edward Wolfe says UTI's closest public competitors, Expeditors International and EGL, pre-reported downside third-quarter results but saw relative strength in their stocks. In contrast, UTI didn't pre-report and sees a relatively strong third quarter. Wolf expects UTI to continue to grow its earnings before interest and taxes and earnings per share by two to three times faster than Expeditors has than in the last 10 quarters.
Wolfe notes investors increasingly are appreciating quality of UTI's management team and operating model, and he says stock pullbacks are becoming less frequent. He expects an accretive acquisition over the next quarter or so. Finally, he raised the $39 2004 year-end price target to $46.