Piper Jaffray Maintains Overweight On Landstar System After Q4 Update (LSTR)

Piper Jaffray is maintaining its Overweight rating on Landstar System LSTR despite the company reporting a disappointing fourth quarter update. It has a $49 price target. In a note sent to investors, Piper Jaffray writes, "LSTR hosted its scheduled mid 4Q10 update call yesterday afternoon during market hours. Previously provided 4Q10 revenue guidance of $580M-$620M was unchanged, however, management expectations are to come in at the lower end. 4Q10 EPS range of $0.45-$0.50 was also unchanged but management indicated a meaningful multi vehicle accident occurring during the quarter adds likely incremental costs (not quantified). Despite what appears to be further modest top line deceleration in the near term we retain our Overweight rating given valuation and the potential for top line reacceleration." Shares of LSTR lost 79 cents yesterday to close at $36.50, a loss of 2.1%.