J.P. Morgan Reports Down 2Q On EXPD

J.P. Morgan has lowered it price target from $58 to $48 on Expeditors (NASDAQ: EXPD) following low numbers from the company in 2Q11.

According to J.P. Morgan, “EXPD's downside 2Q11 EPS showed the impact from weak international airfreight trends and a significant deceleration in ocean container volumes through the quarter. EXPD's yield performance was solid in 2Q11 with a strong expansion of ocean yields and also meaningful expansion of airfreight yields. Nevertheless, EPS growth of only 5.6% was unimpressive. While EXPD's y/y tonnage and EPS growth could bounce against somewhat easier comparisons in 2H11, we have limited visibility to a near term catalyst for the stock and we suspect that the stock could gradually drift lower.”

J.P. Morgan maintains its Neutral rating on the stock.

EXPD closed at $45 yesterday.