Wells Fargo Sees Long-Term Upside for Knife River (KNF) Amid Backlog Growth and Acquisition Strategy

Knife River Corporation (NYSE:KNF) ranks among the best mid-cap materials stocks to buy now. Wells Fargo maintained its Overweight rating on Knife River Corporation (NYSE:KNF) and raised its price target from $96 to $97 on August 11. The update came despite Knife River’s lower-than-expected second-quarter performance and lowered outlook for the current period.

Wells Fargo Sees Long-Term Upside for Knife River (KNF) Amid Backlog Growth and Acquisition Strategy

According to Wells Fargo, the factors behind Knife River’s performance failure are “transitory,” with the firm citing weather-related problems and Oregon state financing difficulties as particular short-term obstacles.

The firm pointed to Knife River’s increasing backlog as a sign of strength, indicating that it may position the company for “a very strong 2026,” as long as management continues to focus on bolt-on acquisitions and operational enhancements.

Knife River Corporation (NYSE:KNF) offers contractual services and construction supplies based on aggregates. The company provides its services and building supplies across the central, southern, and western United States.

While we acknowledge the potential of KNF to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KNF and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.