Oct 22 (Reuters) - Shares of C.H. Robinson Worldwide Inc (CHRW.O) were up as much as 14 percent Wednesday, a day after the third-party logistics provider reported strong third-quarter results despite a weak freight environment.
"Strong quarter reflects CHRW's ability to adapt to varying freight environments, in this case offsetting weak demand through share gains and cost controls," Robert W. Baird analyst Jon Langenfeld wrote in a note.
Langenfeld, who maintained his "outperform" rating on the stock, said the company's earnings should prove more resilient in a downturn, given its "scale/density, differentiated product offering and variable cost structure."
"Though we expect worsening gross profit margins from stable to rising freight rates, we expect CHRW to sustain growth through market share gains and further growth of newer product lines," he said.
Merrill Lynch upgraded the stock to "buy" from "neutral," according to theflyonthewall.com.
On Tuesday, C.H. Robinson reported better-than-expected third-quarter results reflecting growth across all its segments. For details, click on [ID:nBNG389933]
Shares were trading up $4.62 at $44.69 in morning trade on Nasdaq. They earlier touched a high of $45.65. (Reporting by A.Ananthalakshmi in Bangalore; Editing by Anil D'Silva;) ((email@example.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: firstname.lastname@example.org))