Goldman Sachs Says "Momentum Should Continue" For Con-way Inc. (CNW)

Goldman Sachs has a Neutral rating on shares of Con-way Inc. CNW and a $43 price target. In a note to clients, Goldman writes, "Positive on stock given more stable volumes driving margin opportunity: Despite macro fears and what has seemed to be slowing growth across transportation, we believe Con-way's LTL business volumes have remained consistent, which makes it easier to right-size the cost structure. We see several areas of margin upside as a result, including: (1) less overtime pay, which we estimate could amount to close to a $0.40 EPS benefit; (2) lower workers comp, which could be a roughly $0.10 benefit; (3) lower damage claims, which could add $0.10-$0.15; and (4) higher asset utilization." Shares of CNW lost 23 cents yesterday to close at $35.68, a loss of 0.64%.