UPDATE: Wunderlich Securities Reiterates On Con-way Following Strong 1Q14 Results

In a report published Friday, Wunderlich Securities analyst Nicholas J. Bender reiterated a Hold rating on Con-way CNW, and raised the price target from $40.00 to $44.00. In the report, Wunderlich Securities noted, “Con-way (CNW) reported better-than-expected 1Q14 results on Wednesday afternoon, with EPS of $0.20 topping the $0.16 consensus. Management's conference call yesterday brought more optimism, and it appears the company is once again hitting its stride as we enter a period of more favorable seasonality. Improving LTL demand conditions are at the company's back, spurring an acceleration in tonnage growth and putting consistent margin enhancement within reach. "As a result, we are raising our estimates slightly and increasing our price target from $40 to $44, reflecting a valuation level that is more in line with the peer group. Nevertheless, we believe a permanent inflection in operating margin is still several quarters off, at the earliest, and remain comfortable with our Hold rating.” Con-way closed on Thursday at $44.26.