Analyst Ravi Shanker from Morgan Stanley maintained a Hold rating on Landstar System (LSTR – Research Report) and keeping the price target at $138.00.
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Ravi Shanker has given his Hold rating due to a combination of factors impacting Landstar System’s performance. The company is facing ongoing challenges from insurance and claims expenses, which have been a recurring issue affecting their operating results. Additionally, management has refrained from providing formal guidance for the second quarter due to uncertainties surrounding tariffs and trade, further contributing to the cautious outlook.
Despite these challenges, there are some positive indicators, such as improved volumes in early May and expectations of a favorable upcycle in the second half of the year. However, the persistent insurance-related pressures and a market preference for asset-based solutions continue to weigh on the company’s prospects. As a result, Ravi Shanker maintains a Hold rating, reflecting a balanced view of potential opportunities and risks, with an estimated fair value for the stock around $138.
Shanker covers the Industrials sector, focusing on stocks such as Allegiant Travel Company, Southwest Airlines, and United Airlines Holdings. According to TipRanks, Shanker has an average return of -1.8% and a 47.96% success rate on recommended stocks.