UPDATE: Wunderlich Securities Initiates Hold, $59 PT on Landstar System; Valuation Fair

Wunderlich Securities initiates its coverage on Landstar Systems LSTR with a Hold rating and a price target of $59 a share. Wunderlich Securities says, "LSTR provides transportation solutions via its differentiated network of business capacity owners (BCOs) and broker carriers, which connect to shippers through the company's 1,000+ agents. The asset-light infrastructure allows LSTR to generate outstanding margins while also avoiding one of the natural constraints on capacity growth: driver availability. Despite the advantages of such a model, we see earnings growth slowing from 30%+ in 2010 and 2011 to 16% in 2012, as key verticals like energy decelerate. While other segments such as housing and construction show signs of bottoming, growth in those areas is unlikely to resume near term." LSTR closed at $55.27 on Wednesday.