Piper Jaffray Keeps Neutral Rating on Shares of Universal Truckload Services (UACL)

Piper Jaffray has a Neutral rating with a price target of $18 on shares of Universal Truckload Services (UACL). Piper Jaffray analyst writes, "Upside versus our estimate resulted from (1) stronger than expected revenue on Truckload price and Intermodal vols and (2) lower than expected operating costs. While UACL's 1Q11 gross yields were down y-o-y 40bp and below our expectations the company offset this margin pressure with better price and cost control. Likely UACL has a cost takeout opportunity during 2011 as it works further through prior acquisitions. We do see potential for further gross yield compression into a tightening Truck market. We remain Neutral rated at this time." Shares of Universal Truckload Services (UACL) closed at 15.75 yesterday.