CNW May Issue Muted Margin Outlook For 2H10

Analysts at JP Morgan reiterate their "neutral" rating on Con-way

, while reducing their estimates for the company. The target price for CNW is set to $33. JP Morgan says, “CNW’s 2Q EPS report was below Consensus and we expect them to provide a muted outlook regarding the pace of margin improvement in 2H10. Despite a clear improvement in LTL market demand in 2Q, it appears that this market is not yet tight enough to allow a significant improvement in pricing, and our sense is that CNW’s efforts at yield management have probably been somewhat cautious. “We anticipate pressure on CNW stock in response to the 2Q earnings and what we expect to be a muted commentary on pricing,” the analysts add. JP Morgan has lowered its EPS estimate for 2010 from $1 to $0.90.