In a report released today, Jason Seidl from TD Cowen reiterated a Hold rating on Landstar System, with a price target of $127.00.
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Jason Seidl has given his Hold rating due to a combination of factors impacting Landstar System’s performance. The company slightly missed consensus expectations for the third quarter and has set cautious expectations for the peak season, with October truck loads starting the fourth quarter at a 3% decline. Additionally, the potential impact of a government shutdown and regulatory enforcement on capacity remains uncertain, contributing to a conservative outlook.
Management has not observed a capacity crunch yet, but they anticipate that regulatory enforcement could gradually affect capacity in the future. While certain segments like unsided and flatbed revenues showed strength, overall trends in October were below seasonal norms. The company also refrained from providing a fourth-quarter EPS guide due to market uncertainties, indicating a cautious approach moving forward.
In another report released on October 17, TR | OpenAI – 4o also downgraded the stock to a Hold with a $143.00 price target.