Deutsche Bank Reiterates Hold On Landstar System (LSTR)

Deutsche Bank has a Hold rating and a $44 price target on Landstar System, Inc. LSTR. In a note sent to investors, Deutsche Bank writes, "We are lowering our Q4 2010 EPS estimate to $0.45, from $0.47, and our 2011 EPS estimate to $2.20, from $2.22. We have tempered our revenue growth estimate to $593 million as we have reduced our load growth estimate and pricing (revenue/load) expectations. While we have increased our insurance expense estimate, lower purchased transportation costs will likely somewhat offset higher insurance accruals. However, if the severe multi-vehicle accident requires a $5 million accrual, downside likely exists to our Q4 EPS estimate and company guidance. LSTR remains Hold-rated as we prefer to own asset-based transportation companies into a potentially improving pricing environment." Shares of LSTR lost 79 cents yesterday to close at $36.50, a loss of 2.1%.