Citi Reiterates Buy on Knight-Swift (KNX), Raises Price Target Amid Freight Optimism

Ariel Rosa of Citi revised the firm’s outlook on Knight-Swift Transportation Holdings Inc. (NYSE:KNX) on May 30. The analyst maintained a Buy rating on the stock and raised the price target from $48 to $53. Citing a number of signs of freight market capacity constraints, the analyst emphasized that Knight-Swift is in a strong position to profit from an expected rate increase.

Citi Reiterates Buy on Knight-Swift (KNX), Raises Price Target Amid Freight Optimism

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Knight-Swift Transportation Holdings Inc. (NYSE:KNX) is one of the best-managed truckload carriers in the US, according to Rosa, who praised the company’s management. The analyst identified a number of variables that hint to better freight sector circumstances, including a decrease in Class 8 net truck orders, a spike in carrier exits, and the return of seasonal demand trends. Rosa also pointed to the impending English Language Proficiency (ELP) requirement for truck drivers, which is scheduled to go into effect in late June, as a potential trigger that would further limit capacity and potentially raise rates.

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