UPDATE: Stifel Nicolaus Downgrades Landstar System to Hold

Stifel Nicolaus lowers its rating on Landstar System LSTR to Hold from Buy on valuation grounds as it believes the company has little upside to EPS estimates. Stifel Nicolaus notes, "We are downgrading the common shares of Landstar System from Buy to Hold primarily on the basis of valuation. The company held its quarterly mid-quarter conference call yesterday, and management's comments suggest it is on track to meet analysts' EPS growth targets this year. However, the company's owner-operator-agent based operating model contains little operating leverage and, therefore, little upside surprise to EPS estimates is likely." LSTR closed at $55.34 a share on Thursday.