UPDATE: J.P. Morgan Color On HTLD Target Increase

J.P. Morgan, which raised its PT on shares of Heartland Express, Inc. HTLD, is providing some color on the stock. “On Wednesday morning, HTLD reported 1Q earnings of $0.16/ share, which is in line with our forecast of $0.16 and slightly better than Consensus of $0.15, although the reported number was boosted by a stronger than expected gain on sale relative to our estimate,” J.P. Morgan writes. “Our sense is that continued improvement in demand and a tightening truckload market should support solid pricing improvement in 2011. We also believe that HTLD is likely to realize solid margin improvement as the market tightens and pricing improves, despite rising fuel costs. “We are maintaining our EPS estimates of $0.78 and $0.94 for 2011 and 2012, respectively.” Heartland Express closed Wednesday at $17.48.