UPDATE: Wunderlich Securities Reiterates On P.A.M. Transportation Services Following 2Q14 Results

In a report published Tuesday, Wunderlich Securities analyst Nicholas J. Bender reiterated a Buy rating on P.A.M. Transportation Services PTSI, and raised the price target from $28.00 to $40.00. In the report, Wunderlich Securities noted, “P.A.M. Transportation (PTSI) reported 2Q14 results intraday yesterday, and EPS of $0.62 handily topped our $0.34 estimate. The quarter benefited to a degree from greater than expected gains on the sale of used equipment; we estimate this tailwind at $0.10 of EPS. The remainder of the beat was clean, and came from much better than expected operating margin. Revenue of $104.3 million was actually a bit light of our estimate, but improved efficiency and better rates combined with comparatively lower cost inflation to generate an 89.3% OR (ex fuel). Though shares have seen significant outperformance over the past 18 months, we reiterate our Buy rating as management has a number of levers to pull over the intermediate term.” P.A.M. Transportation Services closed on Monday at $34.15.