Piper Jaffray Sees Significant Upside In Landstar System (LSTR)

Piper Jaffray is out with a research report on Landstar System LSTR, and has an Overweight rating and $52 price target after the company released its mid quarter update. In a note to investors, Piper Jaffray writes, "Yesterday afternoon LSTR hosted its regularly scheduled mid-quarter update. The call was modestly negative given management downwardly narrowed its previous high end revenue and EPS guidance ranges given a combination of slightly greater than anticipated volume growth moderation (economy), Freight mix (lower margin substitute LTL line-haul business), and generally higher purchased transportation costs. We've modestly lowered our near term EPS estimates, but continue to see LSTR outperforming its Transport peers from an earnings growth perspective. Reiterate Overweight rating and $52 price target." Shares of Landstar gained 11 cents yesterday to close at $36.10.