UPDATE: Wunderlich Securities Upgrades Con-way to Buy, Raises PT on Improving Demand Environment

In a report published Friday, Wunderlich Securities analyst Nicholas J. Bender upgraded the rating on Con-way CNW from Hold to Buy, and raised the price target from $44.00 to $57.00. In the report, Wunderlich Securities noted, “We are upgrading shares of Con-way (CNW) from Hold to Buy, as an improving LTL demand environment is supporting the company's internal initiatives to enhance margin. The company has spent much of the last three years implementing programs to boost efficiency and cut cost, but the consolidated operating ratio languished around 96% from 2011 to 2013. However, over the next 12-18 months, we expect these efforts to begin accruing more material benefits. An enhanced focus on lane balance is reducing the company's reliance on purchased transportation, pulling cost out of the model and building density on one of the largest LTL networks. As comps ease in 2H14 and demand continues to be supported by a tight truck capacity dynamic, we expect Con-way's EPS growth to accelerate.” Con-way closed on Thursday at $47.94.