Landstar System (NASDAQ:LSTR) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Morgan Stanley raised its price target on Landstar System from $135 to $145 but kept an equal weight rating, implying downside from the current share price.
• Overall analyst sentiment remains cautious: the stock now has a consensus Hold rating and a consensus target price of $179.36, with most analysts issuing hold calls.
• Landstar recently reported better-than-expected quarterly results, posting EPS of $1.16 versus $1.11 expected, while also approving a stock buyback program covering up to 3.3% of shares.

Landstar System (NASDAQ:LSTR - Get Free Report) had its price target lifted by analysts at Morgan Stanley from $135.00 to $145.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage currently has an "equal weight" rating on the transportation company's stock. Morgan Stanley's price target would suggest a potential downside of 20.93% from the company's current price.

Several other equities analysts have also issued reports on the stock. Truist Financial lifted their price target on shares of Landstar System from $145.00 to $190.00 and gave the stock a "hold" rating in a report on Wednesday, April 29th. Weiss Ratings raised shares of Landstar System from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday, April 29th. Stifel Nicolaus lifted their price target on shares of Landstar System from $147.00 to $175.00 and gave the stock a "hold" rating in a report on Wednesday, April 29th. Evercore set a $181.00 price target on shares of Landstar System in a report on Wednesday, April 29th. Finally, TD Cowen lifted their price target on shares of Landstar System from $150.00 to $175.00 and gave the stock a "hold" rating in a report on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat, Landstar System presently has a consensus rating of "Hold" and a consensus target price of $179.36.

Landstar System Stock Performance

Shares of LSTR stock opened at $183.39 on Monday. The firm has a market cap of $6.22 billion, a price-to-earnings ratio of 50.66 and a beta of 0.85. The company's 50 day moving average is $163.97 and its 200 day moving average is $149.60. The company has a quick ratio of 1.88, a current ratio of 1.88 and a debt-to-equity ratio of 0.05. Landstar System has a 52-week low of $119.32 and a 52-week high of $195.84.

Landstar System (NASDAQ:LSTR - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The transportation company reported $1.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.11 by $0.05. The company had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.16 billion. Landstar System had a net margin of 2.62% and a return on equity of 19.49%. Landstar System's revenue was up 1.6% compared to the same quarter last year. During the same period last year, the company posted $0.95 earnings per share. On average, sell-side analysts anticipate that Landstar System will post 5.55 EPS for the current fiscal year.

Landstar System announced that its board has approved a stock buyback program on Tuesday, April 28th that authorizes the company to buyback 1,115,195,000,000 shares. This buyback authorization authorizes the transportation company to purchase up to 3.3% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On Landstar System

Several institutional investors and hedge funds have recently made changes to their positions in LSTR. Integrated Wealth Concepts LLC lifted its stake in shares of Landstar System by 9.8% during the first quarter. Integrated Wealth Concepts LLC now owns 3,767 shares of the transportation company's stock worth $566,000 after buying an additional 336 shares during the period. Goldman Sachs Group Inc. lifted its position in Landstar System by 57.1% during the first quarter. Goldman Sachs Group Inc. now owns 138,009 shares of the transportation company's stock valued at $20,729,000 after purchasing an additional 50,142 shares during the period. Empowered Funds LLC lifted its position in Landstar System by 38.3% during the first quarter. Empowered Funds LLC now owns 4,687 shares of the transportation company's stock valued at $704,000 after purchasing an additional 1,298 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Landstar System by 13.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 142,341 shares of the transportation company's stock valued at $21,380,000 after purchasing an additional 16,698 shares during the period. Finally, Geneos Wealth Management Inc. lifted its position in Landstar System by 132.7% during the first quarter. Geneos Wealth Management Inc. now owns 249 shares of the transportation company's stock valued at $37,000 after purchasing an additional 142 shares during the period. 97.95% of the stock is currently owned by institutional investors and hedge funds.

About Landstar System

Landstar System, Inc provides integrated transportation management solutions through a network of independent agents and third-party capacity providers. The company specializes in truckload brokerage, intermodal, air and ocean freight, expedited and heavy-haul services, along with value-added offerings such as cargo insurance, customs brokerage and supply chain management. Landstar's proprietary technology platform enables real-time load matching, shipment tracking and data analytics to optimize fleet utilization and improve customer service.

Founded in 1968 and headquartered in Jacksonville, Florida, Landstar pioneered an asset-light brokerage model that has evolved into a global logistics operation.

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