Evercore ISI initiates coverage on Landstar System (NASDAQ:LSTR) with an In Line rating and a 12-month price target of $171.
The firm points to unprecedented levels of dislocation in trucking capacity and a heightened demand for truckload transportation that has resulted in peak spot rates. LSTR is noted to have been relatively insulated to the erosion of brokerage spreads that have weighed heavily peers. "However, while we find LSTR’s operating structure appealing in the current environment, the uncertainty surrounding the duration of the current cycle, the likely magnitude of an eventual cyclical reversion, and relative valuation are all primary factors influencing our In Line rating," updates Charles Yukevich and team.