UPDATE: J.P. Morgan Raising Price Target On Landstar

J.P. Morgan Chase & Co. is out with a research report on Landstar LSTR and is raising its price target to $54 from $53, and is keeping its Overweight rating after earnings. In a note to clients, J.P. Morgan Chase & Co. writes, "On Thursday morning LSTR reported strong, upside 2Q EPS of $0.62 (+27% y/y); which compared to the Street consensus (as reported by Bloomberg) and our forecast of $0.59, and the LSTR's guidance range of $0.56-0.61. A key takeaway from LSTR's report is that spot pricing growth accelerated – to low double digits – in the truckload market in 2Q. We believe pricing is likely to be a primary driver of revenue and EPS growth for LSTR in 2H11. Separately, the report showed that LSTR continues to execute on the cost side as SG&A and other operating costs were both below our forecast. We are raising EPS estimates. Our Dec-11 price target rises to $54 (~15% upside), and we remain Overweight." Shares of LSTR gained 12 cents yesterday to close at $46.87.