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Bank Of America Reiterates On Con-way Following Earnings Report

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Bank of America analyst Ken Hoexter released a note reiterating Con-way's (NYSE: CNW) Neutral rating and raised its price target from $54 to $56 in reaction to its recently released earnings report.

Hoexter wrote, “Con-way reported 2Q14 EPS of $0.91, a 34% increase year-over-year, and ahead of our $0.76 and consensus’ $0.75 estimates.” Total revenue was $1.49 billion, up eight percent and $46 million above Hoexter’s target.

Related Link: UPDATE: Bank Of America Reiterates On World Fuel Services Following 2Q14 EPS Report

Con-way benefited from a strong demand in its Truckload and Freight segments and increased pricing. Menlo Logistics significantly surpassed Bank of America’s top-line target, however, the main reason for such a successful quarter was cost management.

Con-way’s board recently approved a 50 percent increase in the dividends, as well as a $150 million share repurchase program. Hoexter sees this move as an indicator of Con-way in its ongoing turnaround.

Hoexter raised the price target, but chooses to maintain the Neutral rating stating that, “[Con-way] remains near the upper end of its historical trading range.”

Con-way is up 4.4 percent Thursday.

Latest Ratings for CNW

DateFirmActionFromTo
Sep 2015DowngradesBuyHold
Sep 2015DowngradesOutperformMarket Perform
Sep 2015MaintainsNeutral

View More Analyst Ratings for CNW
View the Latest Analyst Ratings

Posted-In: Bank of America Ken HoexterAnalyst Color Price Target Reiteration Analyst Ratings

 

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