Deutsche Bank Rates Con-Way A Buy (CNW)

Deutsche Bank rates shares of Con-Way CNW a Buy and has a $37 price target on it after the trucking company reported quarterly earnings yesterday. In the report Deutsche Bank notes, "Yesterday, CNW reported continuing Q2 EPS of $0.22 below us and Consensus of $0.30. Q2 excludes a $0.04/share tax benefit. The report was underwhelming as CNW generated negative operating leverage as increased purchased transportation, wage and benefits, and insurance and claims expense overwhelmed revenue and volume growth. While our disappointment was broad-based as Con-way Freight and Con-way Truckload fell short of our expectations, we see value in the shares as earnings improve alongside LTL yields. Buy." Shares of Con-Way closed at $33.77 yesterday.