Benchmark Co. analyst Christopher Kuhn has maintained their neutral stance on LSTR stock, giving a Hold rating today.
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Christopher Kuhn has given his Hold rating due to a combination of factors impacting Landstar System’s performance. The company’s third-quarter earnings per share were slightly below expectations, with revenue and operating income also falling short of forecasts. Despite these challenges, there were positive signs such as growth in the heavy-haul segment and a sequential increase in the BCO truck count, indicating potential stabilization.
However, the overall freight environment remains difficult, with truck capacity readily available and market conditions favoring shippers. While there was a slight increase in truck revenue per load, the overall revenue and operating income were below estimates. Additionally, freight conditions are expected to remain soft, with October trends tracking below normal seasonality. These mixed signals contribute to the Hold rating, as the company navigates through these challenging market conditions.
In another report released today, TD Cowen also reiterated a Hold rating on the stock with a $127.00 price target.