Cautious Outlook for Landstar System Amid Subdued Trends and Regulatory Uncertainty

Analyst Jason Seidl from TD Cowen reiterated a Hold rating on Landstar System (LSTR – Research Report) and decreased the price target to $141.00 from $145.00.

Jason Seidl has given his Hold rating due to a combination of factors affecting Landstar System’s performance. The company’s first-quarter results were better than initially feared, despite the impact of fraud charges. However, the trends in April were below seasonal expectations, and management noted that there is still ample capacity in the truckload network, which could pressure results in May.
Despite some positive aspects, such as the company’s share repurchase and slightly better-than-expected volumes, the overall subdued trends and the potential for further pressure in the coming months led to a cautious outlook. Seidl also noted the gradual decrease in truckload capacity and potential impacts from regulatory changes, which contribute to uncertainty. As a result, he adjusted the price target to $141, reflecting a balanced view of the risks and opportunities facing Landstar System.

Seidl covers the Industrials sector, focusing on stocks such as TFI International, Expeditors International, and Union Pacific. According to TipRanks, Seidl has an average return of 20.3% and a 63.84% success rate on recommended stocks.