Piper Jaffray Cuts Price Target On Con-Way (CNW)

Piper Jaffray is cutting its price target on shares of Con-Way, Inc. CNW to $33, and is keeping its Neutral rating on shares. In a note sent to clients, Piper Jaffray writes, "Yesterday before the market, CNW pre-reported downside 4Q10 EPS, which suggests a single digit EPS figure for the quarter vs. our prior $0.27 estimate and consensus $0.23. Downside was driven at Freight (LTL), due to unforeseen health care costs and holiday pay. While Freight (LTL) yields are accelerating and variable costs are being reduced, we remain concerned that a drastic strategy reversal could continue to result in underperforming profitability vs. EPS expectations. We've lowered our EPS estimates and our price target to $33. We remain Neutral rated (given strong Transport fundamentals and CNW operating leverage), but we have a near-term downward bias on the stock." Shares of CNW gained 34 cents yesterday to close at $34.90, a gain of 1%.