UPDATE: Wunderlich Securities Initiates Coverage on Con-way with Hold Rating, $32 PT

In a report published Friday, Wunderlich Securities initiated coverage on Con-way CNW with a Hold rating and $32.00 price target. Wunderlich noted, “We are initiating coverage of Con-way Inc. (CNW) with a Hold rating and $32 target. CNW is the third-largest LTL carrier, a relevant truckload carrier, and supply chain management company. CNW has long been considered a premium service provider of LTL freight, but now finds itself in a catch-up position to competitors in terms of technology and network sophistication. Although CNW has experienced material yield increases over the prior eight quarters, its operating ratio of mid-90% still lags 400-500 bps above levels achieved in the past. CNW is in the early innings of a three-year plan focused on Lean principals and productivity initiatives to drive margin expansion, but the velocity of earnings progression has been slow to develop.” Con-way closed on Thursday at $27.71.