UPDATE: Credit Suisse Reiterates on Landstar System on Favorable Market Conditions

In a report published Friday, Credit Suisse analyst Allison M. Landry reiterated a Neutral rating on

, and raised the price target from $55.00 to $60.00. In the report, Credit Suisse noted, “We have raised our FY14 EPS estimate to $2.82 from $2.78. Our FY15 and FY16 EPS forecasts increase to $3.11 and $3.35 from $3.06 and $3.31, respectively. Our DCF-derived target price increases to $60 (from $55), as we have dialed in a higher 3-5 year EBIT growth rate. LSTR reported 1Q14 EPS of $0.61, vs. our estimate of $0.58 and the consensus of $0.59. Revs were ~2% higher than expected, while the op margin on gross profit of 42.3% was 180 bps better than our 40.5%.” Landstar System closed on Friday at $62.66.