Nomura Securities Starts Con-way (CNW) at Neutral

Nomura Securities initiates coverage on Con-way (NYSE: CNW) with a Neutral rating and a price target of $51.00.

Analyst Matt Troy commented, "We see Con-way (CNW) as a turnaround story with potential catalysts in pricing, operating cost leverage, and industry capacity rationalization. Restructuring initiatives are hitting their stride going into 2015 and we believe the company has significant embedded earnings power into the later innings of the economic recovery; near term, however, we do not see margin improvement pausing. As such we expect the pace of improvement initiatives to slow in 2015 and into 2016 and to shift from yield management to more difficult operational and volume gains; and elevated labor costs are a nearterm headwind. And while market conditions are favorable, we believe structural change in the industry undermines margin potential. Given our view of a balanced risk/reward profile, we initiate at Neutral with a $51 target price."

For an analyst ratings summary and ratings history on Con-way click here. For more ratings news on Con-way click here.

Shares of Con-way closed at $48.73 yesterday.

You May Also Be Interested In

• UBS Starts Cartrade Tech Ltd (CARTRADE:IN) at Buy
• Nomura/Instinet Starts Malayan Cement Bhd (LMC:MK) at Buy
• L&T Financial Holdings (LTFH:IN) PT Raised to INR380 at Axis Capital Limited