Knight Transportation (KNX) shares increasingly attractive after pullback, says analyst

StoneX analyst Christopher Kuhn reiterated a Buy rating and $90.00 price target on Knight Transportation (NYSE: KNX).

The analyst commented, "We maintain our Buy rating and $90 price target on Knight-Swift ahead of third-quarter results. We expect the company to report EPS near the high end of management's $0.71-$0.77 guidance range, although fuel is likely to be a modest headwind within the Truckload segment due to the lag between rising diesel prices and fuel surcharge recovery. More importantly, we believe the benefits of improving truckload contract pricing will become increasingly evident in late 2026 and throughout 2027, creating a more meaningful earnings tailwind than the temporary fuel-related pressure experienced during the quarter. We also expect management's outlook commentary to remain constructive. The freight market continues to benefit from rising contract rates, ongoing carrier exits, improving industrial activity, and manageable customer inventory levels. While truckload spot rates softened during the quarter, we continue to view the broader supply-demand backdrop favorably. Driver availability remains an industry challenge and could result in higher driver-related costs, as recently highlighted by J.B. Hunt. However, we believe Knight-Swift is better positioned than most carriers given its extensive terminal network, driver-training academies, and diversified service portfolio spanning Truckload, Dedicated, LTL, Drayage, and Logistics. The company has continued investing in recruiting and productivity initiatives aimed at improving seated truck counts, while remaining focused on yield improvement and margin recovery. We believe Knight-Swift will have repriced the majority of its contract portfolio at favorable rates by the end of 3Q, positioning earnings to benefit as those gains increasingly flow through the P&L despite recent spot market volatility. Following the recent pullback in the shares, we believe the risk/reward has become increasingly attractive."

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 $65.05 yesterday.

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