UPDATE: Dahlman Rose Raising Price Target On Con-way (CNW)

Dahlman Rose & Co. is raising its price target on shares of Con-way CNW to $44 from $38, and it has a Buy rating after the company reported earnings. In a note to investors, Dahlman Rose writes, "Con-way reported 1Q11 EPS of $0.12. However, excluding a $6.3 MM one-time tax increase, EPS From Continuing Operations came in at $0.24, significantly above our and consensus estimate of $0.06 and $0.04, respectively. The company achieved these strong results as its pricing action and efficiency improvements over the last few quarters have started to materialize. Indeed, LTL incremental operating margin was 55%, and the total incremental operating margin was 27%. Total operating income increased an impressive 155% y/y to $36.7 MM vs our and consensus estimates of $19.4 MM and $18.4 MM, respectively. The company also beat modestly on the top line, with revenue coming in at $1.25 Bn vs our estimate of $1.22 Bn and consensus estimate of $1.23 Bn." Shares of CNW gained $1.94 yesterday to close at $39.54, a gain of 5.16%.