In a report released today, Ravi Shanker from Morgan Stanley maintained a Hold rating on Landstar System (LSTR – Research Report), with a price target of $145.00.
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Ravi Shanker has given his Hold rating due to a combination of factors that impact the financial outlook of Landstar System. The company’s recent quarterly performance saw revenue meeting expectations, but increased insurance costs have negatively affected earnings, thus driving them below expectations. This trend has persisted for the second consecutive quarter, which raises concerns over continued cost pressures.
Furthermore, while there are some positive signs in the market cycle, such as improved yields and potential revenue growth, the company’s exposure to spot market volatility and the limited conversion of these improvements by third-party logistics providers restrict the level of enthusiasm. The cautious guidance for the upcoming quarter also reflects these uncertainties, suggesting that while there is potential for growth, the risks and challenges currently balance out the potential rewards, justifying the Hold rating.
In another report released on January 31, Evercore ISI also reiterated a Hold rating on the stock with a $159.00 price target.
Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LSTR in relation to earlier this year.