UPDATE: BMO Capital Markets Raises Con-way's PT
According to a research report published this morning, BMO Capital Markets has increased Con-way's (NYSE: CNW) PT from $32 to $36.
In the report, BMO Capital Markets commented, "On a 10% rise in revenues, consolidated operating income increased 52%. The improved performance was primarily driven by the LTL segment. LTL yield, excluding fuel surcharges, increased 4.1% y/y due to improved contractual pricing and a GRI that was implemented last year. Operating margins in the LTL business also reflected improved productivity and cost controls, which benefitted from relatively steady network volumes (+1.5% y/y). Meanwhile, the Logistics and Truckload divisions also reported stronger results than last year. Notwithstanding these factors, we expect the y/y improvement in LTL base rates to moderate from current levels."
BMO Capital Markets maintains its Market Perform rating on Con-way, which is currently trading at $34.39.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.