UPDATE: Bank of America Downgrades Con-Way to Underperform on Costs, Freight Weakness

Bank of America reduced its rating on Con-Way

from Buy to Underperform and lowered its price target from $37 to $27. Bank of America noted, "We are lowering our rating on Con-way's shares to Underperform from Buy given the weak freight market, which has already pressured the shares (CNW is down 26% since mid-June), but will likely be compounded with further pressure as the company works to expense its new load program software package. We lower our price objective to $27 from $37, based on an 11x target multiple (from 14x) on our revised 2013 EPS estimate, which is at the lower end of its 10x-18x historical trading range." Con-Way closed at $27.62 on Wednesday.