UPDATE: BB&T Capital Upgrades Landstar System (LSTR) to Buy

(Updated - July 29, 2014 9:29 AM EDT)

BB&T Capital upgraded Landstar System (NASDAQ: LSTR) from Hold to Buy with a price target of $85.00. Analyst Thomas S. Albrecht called it a low risk way to play tight tuckload capacity.

"LSTR is a unique and perhaps misunderstood way to invest in tight truckload capacity. While LSTR has less operating leverage than asset-based carriers, that characterization over simplifies its business. Within its internal trucking network (BCO), its driver turnover is less than 30% compared to an industry-wide average of nearly 100%; it has fewer wage and cost pressures, especially related to equipment; and its model has the capability to experience more rapid revenue growth than asset carriers. We believe, LSTR is a "lower risk" way to invest in tight capacity, with more revenue and EPS upside potential than many recognize. Our 2015E and 2016E of $3.60 and $4.34 are well above consensus estimates of $3.38 and $3.68," said Albrecht.

For an analyst ratings summary and ratings history on Landstar System click here. For more ratings news on Landstar System click here.

Shares of Landstar System closed at $66.68 yesterday.

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