UPDATE: Wunderlich Securities Downgrades Con-way to Hold, Lowers PT Waiting on Margin Enhancement

In a report published Wednesday, Wunderlich Securities analyst Nicholas J. Bender downgraded the rating on

from Buy to Hold, and lowered the price target from $49.00 to $40.00. In the report, Wunderlich Securities noted, “We are transferring coverage of Con-way (CNW) with a Hold rating and $40 price target. Con-way's 4Q13 results came in slightly ahead of lowered expectations following a negative preannouncement (January 16), but the prospect of challenging winter weather remains an overhang for 1Q14. Last year saw the implementation of major initiatives that targeted yield enhancement (lane-based pricing) and efficiency (linehaul optimization). While these programs are starting to show signs of progress, operational hiccups (such as weather in 4Q13) are inhibiting results. With a dramatic and much-anticipated margin ramp now expected in late FY14 or FY15, we prefer the near-term prospects for other LTL names.” Con-way closed on Tuesday at $37.61.