Wells Fargo Downgrades Knight Transportation (KNX) to Market Perform; Cost Headwinds And Sluggish Demand

Wells Fargo downgraded Knight Transportation (NYSE: KNX) from Outperform to Market Perform. Valuation range lowered from $19-21 to $17-19.

Wells analyst says, "We believe the KNX business model has several sustainable advantages that facilitate long-term growth and attractive returns. A regional focus limits the threat from rail intermodal, yet provides the national footprint that is so valuable to many shippers. The unique service center network attractively blends in-market knowledge with flexibility to adapt to dynamic market conditions"

"We have lowered our 6-12 month valuation range to $17-19 from $19-21 on our lower estimates. For Q2 2011 we go to $0.17 from $0.22 (Street at $0.21) and our full year decreases to $0.74 from $0.86 (Street at $0.80) and our 2012E moves to $0.94 from $1.06 (Street at $1.02)."

For more ratings news on Knight Transportation click here and for the rating history of Knight Transportation click here.

Shares of Knight Transportation closed at $17.32 yesterday.

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