Knight Transportation (KNX) PT Raised to $70 at Benchmark, But Near Term Estimates Lowered
Benchmark analyst Christopher Kuhn raised the price target on Knight Transportation (NYSE: KNX) to $70.00 (from $65.00) while maintaining a Buy rating.
The analyst commented, "We maintain our Buy rating on Knight Swift and increase our target price to $70 from $65. However, we are reducing our near-term estimates ahead of first quarter results. We expect KNX to report 1Q results below the company’s $0.28–$0.32 EPS guidance range, reflecting adverse weather impacts, fuel surcharge lag, and unrecovered fuel consumption during the quarter. While 1Q is shaping up weaker than initially expected, we anticipate management commentary to turn incrementally more constructive on the outlook beyond the first quarter, which supports our decision to leave estimates unchanged post 1Q. In our view, the earnings reset in 1Q does not alter the improving fundamental setup as the year progresses. More broadly, while geopolitical developments merit close monitoring, we believe the setup for transportation equities—particularly truckload carriers is the most constructive it has been in roughly four years. Several favorable trends are converging: rising spot rates, continued industry capacity exits, early signs of recovery in industrial activity, and manageable shipper inventories. Industrial indicators are also turning more supportive. The Manufacturing PMI moved into expansionary territory during the first three months of 2026, which could drive incremental industrial related freight demand and benefit Knight Swift’s network scale and operating leverage. As we approach the spring selling season, we see risk skewed to the upside for truckload fundamentals. Improving spot conditions could support further upward pressure on TL metrics, setting the stage for improved contract pricing. We expect carriers such as Knight Swift to pursue mid-single digit rate increases at the start of the bid season; with potential upside should tight conditions persist longer than anticipated."