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Fly News Breaks for September 4, 2018
TA
Sep 4, 2018 | 14:20 EDT
Craig-Hallum analyst Ryan Sigdahl raised his price target for TravelCenters of America to $10 from $6.50 and reiterates a Buy rating on the shares. The sale of the company's "underperforming" convenient stores for $331M will unlock "meaningful value" for shareholders through asset monetization, deleveraging and increased focus on its core business, Sigdahl tells investors in a research note. He expects TravelCenters to use the net proceeds to repay most of its $330M of term debt and reduce its $29M of annual interest expense. Further, he thinks management's entire focus going forward will be on improving and growing the company's core travel centers, truck repair, franchising program and newly introduced TA Express concept. The analyst views the stock's risk/reward as attractive despite today's rally. The stock in afternoon trading is up 30.5%, or $1.33, to $5.68.
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