Piper Jaffray Cuts Price Target On Con-Way (CNW)

Piper Jaffray is cutting its price target on shares of Con-Way, Inc.

to $33, and is keeping its Neutral rating on shares. In a note sent to clients, Piper Jaffray writes, "Yesterday before the market, CNW pre-reported downside 4Q10 EPS, which suggests a single digit EPS figure for the quarter vs. our prior $0.27 estimate and consensus $0.23. Downside was driven at Freight (

), due to unforeseen health care costs and holiday pay. While Freight (

) yields are accelerating and variable costs are being reduced, we remain concerned that a drastic strategy reversal could continue to result in underperforming profitability vs. EPS expectations. We've lowered our EPS estimates and our price target to $33. We remain Neutral rated (given strong Transport fundamentals and CNW operating leverage), but we have a near-term downward bias on the stock." Shares of CNW gained 34 cents yesterday to close at $34.90, a gain of 1%.