Shares Of Landstar System Fall After Downgrade

NEW YORK (AP) — Shares of trucking and logistics company Landstar System Inc. fell Monday after a Wachovia analyst downgraded the stock, saying weak transportation demand should constrict growth in the near future.

Analyst Justin Yagerman cut the stock to "Market Perform" from "Outperform," noting the stock is currently too expensive. Shares have gained 32 percent since March 9, while the S&P 500 has lost 27 percent in the same timeframe.

Looking forward, Yagerman expects weak construction, manufacturing, automotive and transportation demand to continue to constrain earnings, despite the benefit of the company's increased infrastructure investments and the structure of its overall business model. He predicts earnings won't likely improve until these segments begin to pick up. ...