RE:Target $30 at CanaccordOK, ok that's great that it "boosts Yellow’s thesis as a digital growth story", but what about making accretive acquisitions.
They are buying this business at a proforma ~13.6x 2016 EBITDA and 7.65x 2017 EBITDA when the valuation model is based on a 4.75x EV/EBITDA. [I'm assuming growth noted above, a 6% margin in 2016 and growing 2% per year after. I'm also assuming 5% capital investment in the business per year.]
I still think that paying down 8.80% debt interest (net of premium) is a better use of excess cash for investors.
Once they refi, they can issue a dividend, increase the valuation premium on the share price and make acquisitions like this accretive much earlier.
Good luck.