Last Mile Logistics Group has been delivering to the Mid-Atlantic market for several years. Through its subsidiary, Chesapeake Logistics, the company handles the “last mile” of courier service for numerous types of clientele. Last Mile Logistics has a long list of high-profile companies for which it has delivered, including Pier 1 Imports, JCPenney, and Ticketmaster, just to name a few.
Last Mile is the subject of a recent Beacon Equity Research report, in which it received a ‘Speculative Buy’ rating, and a target price of $0.32 from analyst Lisa Springer, CFA. The report states: “We think LMLG warrants a valuation at the high end of the peer group range because of its significant new customer wins, competitive differentiation and above average growth … We also anticipate consistent gross margins gains resulting from greater efficiencies and economies of scale. We expect the Company’s gross margins to improve to a 42 percent range in 2008 and increase to a 45-46 percent range over the next five years.”
Along with the news of having just been awarded a delivery contract with a Fortune 500 paper supplier, the research report has sparked a lot of new interest in the company. The target price of $0.32 was met with wide eyes by many; shares of LMLG stock can currently be purchased for around nine cents.
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