UPDATE: UBS Downgrades Knight Transportation (KNX) to Neutral
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UBS analyst Thomas Wadewitz downgraded Knight Transportation (NYSE: KNX) from Buy to Neutral with a price target of $49.00 (from $47.00).
The analyst comments "We expect the tight truckload market to support strong pricing gains and EPS performance for KNX in 2021. However, we also believe the current extreme tightness in the truckload spot market (MDI up 300% to 400% y/y the past 3 weeks) is unlikely to persist. Against the backdrop of a gradual easing in the spot market we expect KNX's valuation to remain near the lower end of its P/E range. We have raised our 2022 EPS estimate from $3.60 to $3.80 to reflect the boost to freight demand from the $1.9 trillion fiscal stimulus package and an extended TL up-cycle, but the upside to our new price target is not sufficient to justify maintaining a Buy rating. We now rate KNX Neutral (vs our prior Buy rating)."
Shares of Knight Transportation closed at $44.66 yesterday.
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