Fundamentals Supportive But A Few Asterisks Remain

Research evidence excerpt

Fundamentals Supportive But A Few Asterisks Remain

Idea

August 3, 2026 05:00 AM GMT

Morgan Stanley & Co. LLCMLandstar System Inc | North America Ravi Shanker

Equity Analyst

Fundamentals Supportive But A Ravi.Shanker@morganstanley.comMadison J Pasterchick +1 212 761-6350

Research Associate

Madison.Pasterchick@morganstanley.com +1 212 761-3787

Few Asterisks Remain Nancy Hipp

Nancy.Hipp@morganstanley.com +1 212 761-1311

AlphaSignals Earnings Reaction

Landstar System Inc (LSTR.O, LSTR US)

Unchanged In-line Largely unchanged

Freight Transportation | United States of America

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS Stock Rating Underweight

Source: Company data, Morgan Stanley Research Industry View In-Line

Price target $145.00

Shr price, close (Jul 31, 2026) $174.77

Freight fundamentals are improving and LSTR is executing well Mkt cap, curr (mm) $5,923

operationally, but with the shares already pricing in a robust 52-Week Range $228.46-117.74

recovery while structural and litigation-related risks remain, we

continue to see limited upside and remain UW.

Key Takeaways

2Q results reflected improving spot market conditions, with pricing

strengthening materially and demand modestly ahead of normal seasonal

patterns.

Truck revenue per load posted its largest sequential increase in 15 years, while

heavy-haul and unsided/platform equipment remained key growth drivers.

BCO fleet trends continued to improve, with the strongest net truck additions

since 1Q22 and lower driver turnover supporting capacity.

Mgmt. remains constructive on the freight cycle and sees Montgomery-related

broker consolidation creating incremental share opportunities.

Despite improving fundamentals, we believe the stock already includes much of