Forward Air (NASDAQ:FWRD) stock has experienced a 7.8% decline in pre-market Friday trading as a result of rating downgrades by a minimum of three analysts.
These downgrades stem from concerns that the company's $3.2 billion acquisition of Omni Logistics might usher in novel risks to its business.
Wolfe Research analysts cut the rating to Underperform from Peer Perform.
“We expect significant EPS dilution in C24 and we're lowering our C24 EPS estimate materially,” the analysts said.
Stifel analysts moved to Hold from Buy with a price target lowered by $24 to $103 per share.
“Management anticipates significant cash earnings accretion by year 2, but we see sizable execution risk and potential revenue dis-synergies as Forward ingests one of its largest customers. With this deal, Forward Air is once again a show me story, and we're moving to the sidelines for now,” they said.
Raymond James analysts also cut FWRD's stock rating.