Jefferies Q1 Preview on Airfreight and Surface Transportation: Q1 Preview - Three Rail Stocks May Miss
Tweet
Share
E-mailGet Alerts KNX Hot Sheet
Price: $71.60 +3.16%
Rating Summary:
21 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
21 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Jefferies Q1 Preview on Airfreight and Surface Transportation: Q1 Preview
Analyst, Peter Nesvold, sees the mild winter weather versus mild freight volumes counterbalancing for Q1.
Nesvold said, "A potential 2Q recovery in Asia airfreight volumes remains our favorite investment theme. Near term, we see the biggest EPS beats at Knight (NYSE: KNX) and UPS (NYSE: UPS), and the biggest misses at FreightCar America (Nasdaq: RAIL), Heartland Express (Nasdaq: HTLD), and CSX Corp (NYSE: CSX)."
The Jefferies analyst maintains a 'Buy' on CSX, and lowers price target from $29 to $28. Greenbrier (NYSE: GBX) price target cut from $27 to $22. Norfolk Southern (NYSE: NSC) from $81 to $76. RAIL from $31 to $29.
Nesvold commented on rails, "We do believe some benefit from the warm weather has accrued to the railroads as rail velocity has improved sharply over the past few months, as lower coal volumes and improved fluidity have allowed for increased train speeds...While rail traffic is flat to slightly down YoY, it’s still near cyclical highs. This creates an unusually difficult modeling challenge: how to balance the headwind of lower coal volumes against the tailwind of improved productivity?"
Analyst, Peter Nesvold, sees the mild winter weather versus mild freight volumes counterbalancing for Q1.
Nesvold said, "A potential 2Q recovery in Asia airfreight volumes remains our favorite investment theme. Near term, we see the biggest EPS beats at Knight (NYSE: KNX) and UPS (NYSE: UPS), and the biggest misses at FreightCar America (Nasdaq: RAIL), Heartland Express (Nasdaq: HTLD), and CSX Corp (NYSE: CSX)."
The Jefferies analyst maintains a 'Buy' on CSX, and lowers price target from $29 to $28. Greenbrier (NYSE: GBX) price target cut from $27 to $22. Norfolk Southern (NYSE: NSC) from $81 to $76. RAIL from $31 to $29.
Nesvold commented on rails, "We do believe some benefit from the warm weather has accrued to the railroads as rail velocity has improved sharply over the past few months, as lower coal volumes and improved fluidity have allowed for increased train speeds...While rail traffic is flat to slightly down YoY, it’s still near cyclical highs. This creates an unusually difficult modeling challenge: how to balance the headwind of lower coal volumes against the tailwind of improved productivity?"
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Advance Auto Parts (AAP) PT Lowered to $48 at DA Davidson Following 25% Selloff Post Q2 Results
- Beike (BEKE) PT Raised to $23 at Morgan Stanley
- Benchmark Reiterates Buy Rating on NVIDIA (NVDA), Updates Estimates
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Analyst PT ChangeRelated Entities
Jefferies & CoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
