Cowen Securities Reiterates Buy Rating, $40 PT on Con-Way on 1Q Headwinds, Favorable Long-Term Outlook

In a report published Wednesday, Cowen Securities analyst Jason H. Seidl reiterated a Buy rating and $40.00 price target on Con-Way

. In the report, Seidl noted, “CNW expects to face a number of temporary headwinds in 1Q13. We estimate that this could result in a ~$0.20/sh EPS downside versus our prior estimate. As such, we are lowering our 1Q13 estimate. We continue to favor CNW shares beyond the first quarter...We are lowering our 1Q13 EPS estimate to $0.24, from $0.45 to reflect the aforementioned cost headwinds. As a result, our 2013 EPS estimate decreases to $2.00, from $2.25. Our 2014 estimate of $3.05 remains intact. Our $40 price target is based on applying a 13x multiple to our 2014 EPS estimate. CNW's shares are likely to come under notable pressure today as frustration builds due to another missed opportunity by a management that is already on shaky ground with investors. Because we feel the company is taking the right longer-term steps to improve its margins, we maintain our Buy rating.” Con-Way closed on Tuesday at $37.32.