Stifel Downgrades Werner Enterprises (WERN) to Hold
Stifel analyst J. Bruce Chan downgraded Werner Enterprises (NASDAQ: WERN) from Buy to Hold with a price target of $42.00 (from $45.00).
The analyst comments "There's plenty of optimism in the freight market for a cyclical inflection, in our view. And while we feel that the likelihood that freight gets better rather than worse, and momentum should be in Werner's favor, it's tough to see concrete evidence of capacity tightening, let alone to triangulate timing. With Werner trading up to our downwardly-tweaked $42 Target Price, we believe we are in the realm of fair valuation, especially after a challenged 4Q23 EPS print of $0.39, which fell short of our expectation and consensus of $0.42 and $0.44, respectively. Werner is a bigger, better company than it was before the pandemic, and it has exposure to favorable, long-term secular tailwinds like Mexico nearshoring, but with our more tepid outlook and the expectation for a slower recovery, it's hard for us to recommend putting new money to work here right now. Moving to Hold."
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Shares of Werner Enterprises closed at $40.21 yesterday.