Send to a Friend Font Size: Increase Decrease

Piper Jaffray Initiates Coverage on Landstar System (LSTR) with an Overweight; Compelling Longer Term Growth Story

More News related to LSTR

Landstar to Participate in Deutsche Bank's Small and Mid Cap Conference, Stifel Nicolaus Transportation Conference, and BB&T Capital Markets Transportation Services Conference
After-Hours Movers 1/27: NFLX, PFBC, ALGN, SOA, ESIO Higher; QCOM, EGHT, TTEK, LSI, SRDX, VRUS Lower
Landstar System (LSTR) Posts Q4 EPS of $0.37, Misses Views
Landstar System Reports Fourth Quarter Results
Trading Radar for 01/27: ConocoPhillips (COP), Boeing (BA), Abbott (ABT), General Dynamics (GD), E*TRADE (ETFC) Report

More News related to New Coverage

November 13, 2009 8:36 AM EST

Piper Jaffray & Co. initiates coverage on Landstar System (Nasdaq: LSTR) with an Overweight rating. Price target $47.

Piper analyst says, "We believe current consensus EPS expectations do not account for LSTR's revenue growth potential being driven by its Brokerage operation expansion and hidden operating leverage. Our above-consensus EPS expectations are due to stronger Brokerage revenue growth and stronger operating margins...LSTR is in the early stages of transitioning from an owner operator to a more multi modal brokerage oriented model. Brokerage operations, when properly executed (and LSTR management has proven they can), are the fastest growing and highest return business in all of transportation. We believe LSTR's agent network and IT systems are the perfect platform for the company to further expand and scale its brokerage operations at very little cost to the company...We see LSTR as an excellent way to play economic recovery with less downside risk. While names with more operating leverage (LTLs and Integrators) give investors more earnings "bang for the buck" – LSTR (1) stock has not gotten ahead of itself trading at a very reasonable valuation and (2) has very little exposure to competitive pricing issues currently impacting LTLs. We see a much more attractive risk/reward profile for LSTR in the near term."

To see more analyst ratings on LSTR Click Here.

Landstar System, Inc., a non-asset based transportation and logistics services company, provides transportation capacity and related transportation services to shippers in the United States, Canada, and between the United States and Canada, Mexico, and internationally.