Update shared on 05 Nov 2025
Fair value Decreased 2.29%Analysts have modestly lowered their average price target for Landstar System, reducing it by approximately $3 to reflect ongoing industry headwinds such as persistent weak volumes and muted pricing. Some note early signs of stabilization in key operating metrics.
Analyst Commentary
Recent street research highlights both encouraging developments and ongoing concerns impacting Landstar System’s valuation and outlook.
Bullish Takeaways- Bullish analysts noted that a recent quarter-over-quarter increase in BCO truck count, after several years of declines, could signal early stabilization in the business.
- There are some modest upward adjustments to operational estimates, suggesting operational resilience despite ongoing challenges.
- At least one major firm maintained a positive "Overweight" outlook. This points to possible outperformance within the transports group as the market recovers.
- Bearish analysts cite that persistent weak industrial growth and ongoing oversupply remain significant headwinds, leading to broad price target reductions.
- Truckload segment and intermodal pricing continue to stagnate, with volumes remaining weaker than anticipated. This impacts both revenue projections and growth prospects.
- Several experts believe that cyclical conditions in the market suggest further negative revisions to earnings consensus going forward.
- Multiple firms have trimmed estimates into the third quarter and beyond. This reflects limited confidence in a near-term rebound for the sector.
What's in the News
- Landstar System completed a repurchase of 308,709 shares between June 29, 2025 and September 27, 2025. This represents 0.89% of shares for $40.21 million (Key Developments).
- This latest tranche brings total shares repurchased under the ongoing buyback, announced in August 2011, to 14,764,934 shares. This accounts for 36.09% of outstanding equity for $1,472.7 million (Key Developments).
Valuation Changes
- Fair Value: Decreased modestly from $134.14 to $131.07.
- Discount Rate: Declined slightly, moving from 7.96 percent to 7.74 percent.
- Revenue Growth: Improved, rising from 5.94 percent to 6.83 percent.
- Net Profit Margin: Edged up marginally, increasing from 4.70 percent to 4.70 percent.
- Future P/E: Dropped from 20.15x to 18.49x, reflecting reduced valuation multiples.
Disclaimer
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