UPDATE: Piper Jaffray Raises PT on Landstar System from $49 to $53

Piper Jaffray has published a report on Landstar System LSTR raising the price target from $49.00 to $53.00. In the report, Piper Jaffray wrote, "Yesterday before the market LSTR reported 2Q11 EPS of $0.62 (+26.9% y-o-y) which was above Consensus $0.59 and our $0.58 estimate. Upside to our projection resulted from lower than expected costs as percentage of revenue (+$0.03/share) and better yields (+$0.01) offset somewhat by greater gross yield pressure. Volumes were generally softer than anticipated which thus far has held true for the majority of Transport 2Q11 reports. Management's guide in the form of commentary versus previously providing a quantified range suggests 3Q11 absolute revenue and EPS similar to 2Q11. Volume within LSTR's core BCO business continues to lag other transport products (down 5.5% y-o-y in 2Q11) but strong pricing, gross yield improvement, and now better costs are carrying the profit improvement torch in the near term. We retain our Neutral rating." Piper Jaffray rated Landstar System a Neutral with a price target of $53.00. Landstar System closed yesterday at $46.87.