Landstar System (LSTR) PT Lowered to $136 at Evercore ISI, 'we do not expect a large surge in 2Q volumes or a vast recovery in revenue/load'

Evercore ISI analyst Jonathan Chappell lowered the price target on Landstar System (NASDAQ: LSTR) to $136.00 (from $137.00) while maintaining a In Line rating.

The analyst comments "LSTR announced 1Q25 EPS of $0.95 (excluding a one-time charge of $0.10), coming in exactly in-line with the preannounced results and $0.02 ahead of our estimate and the average Street forecast. The supply chain fraud matter that led to a 2-week delay in the earnings release appears to be ring-fenced, was related to a unique relationship in its international forwarding operation, and ultimately ended up being a $4.8 million cost item (the $0.10/share charge referenced above), thus, effectively, not a meaningful or recurring issue. The underlying freight market, though, is not providing much of an immediate reprieve to LSTR’s financials, and we are lowering our 2Q25, FY25, and FY26 EPS estimates to $1.21 (from $1.32), to $4.81 (from $5.10), and to $5.90 (from $6.23), respectively. There is some optimism regarding the 90-day tariff pause with China and the potential to drive another pull forward of freight demand between now and August, but we do not expect a large surge in 2Q volumes or a vast recovery in revenue/load across most of LSTR’s segments until there is more sustainable economic backdrop. As such, we retain our In Line rating with a 12- month price target of $136 (from $137)."

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