Citigroup upgrades C.H. Robinson to 'buy' as freight market conditions improve

Shares of C.H. Robinson (CHRW.O) rose about 2% to $150.2 in premarket trading after Citigroup upgraded the freight-forwarding firm to buy from neutral.

Citigroup cut its price target to $185 from $196, but said the new target still represents a 25.3% premium to the stock's last close. The brokerage said it lowered the target primarily to reflect uncertainty around broker liability after the Supreme Court's Montgomery decision.

Citigroup said it sees conditions improving for CHRW from the third quarter onward, driven by softer spot rates and higher contract rates.

The median price target of 26 brokerages covering the stock is $209.5, according to data compiled by LSEG. As of the last close, the stock was down about 8% year to date.