UBS Raises Price Target on Knight Transportation (KNX); Industry Getting Good but Not Great
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Price: $72.42 -1.2%
Rating Summary:
21 Buy, 10 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
21 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Neutral' on Knight Transportation (NYSE: KNX) price target raised from $15 to $17.50.
UBS analyst says, "The trucking industry is improving at a little faster pace than the overall economy, which is showing up in volumes and pricing. The American Trucking Association reported a 5.9% increase in truck tonnage in 2011 and carrier reports for Q4 show a core pricing run rate of about +3% y/y as we entered 2012. While not a banner year like 2004/05 when a capacity crunch drove pricing up 6%+ at some carriers, current numbers are indicative of a reasonably healthy and ongoing recovery."
"While our estimates post-Q4 results didn’t materially change, macro fundamentals and investor sentiment on trucking stocks certainly has; hence we are lifting our price target multiple from 16x (Q4/12-Q3/13) EPS to 18x 2013 EPS, which we believe is an appropriate discount to the 10-year average NTM P/E of 22x when Knight was a smaller company with a higher sustainable growth profile than it has today."
For an analyst ratings summary and ratings history on Knight Transportation click here. For more ratings news on Knight Transportation click here.
Shares of Knight Transportation closed at $17.75 yesterday.
UBS analyst says, "The trucking industry is improving at a little faster pace than the overall economy, which is showing up in volumes and pricing. The American Trucking Association reported a 5.9% increase in truck tonnage in 2011 and carrier reports for Q4 show a core pricing run rate of about +3% y/y as we entered 2012. While not a banner year like 2004/05 when a capacity crunch drove pricing up 6%+ at some carriers, current numbers are indicative of a reasonably healthy and ongoing recovery."
"While our estimates post-Q4 results didn’t materially change, macro fundamentals and investor sentiment on trucking stocks certainly has; hence we are lifting our price target multiple from 16x (Q4/12-Q3/13) EPS to 18x 2013 EPS, which we believe is an appropriate discount to the 10-year average NTM P/E of 22x when Knight was a smaller company with a higher sustainable growth profile than it has today."
For an analyst ratings summary and ratings history on Knight Transportation click here. For more ratings news on Knight Transportation click here.
Shares of Knight Transportation closed at $17.75 yesterday.
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