Credit Sussie cuts ratings, PTs on transport companies over bleak outlook

ArcBest

17/05/2023 14:22

** Credit Suisse lowers ratings and PTs for transport
companies Knight-Swift Transportation  KNX.N  and Werner
Enterprises Inc  WERN.O 
    ** Brokerage says that freight rates are likely to move
higher in coming months, impressive freight conditions of
2021-2022 unlikely to repeat
    ** Anticipates higher consumer spending if macro headwinds
like tight credit cycle, unemployment, shift for goods to
services and greater equipment availability reducing sales of
used trucks accelerate in coming months
    ** Lowers KNX rating to "neutral" from "outperform", while
reducing PT to $60 from $63 due to USX merger integration
challenges
    ** Lowers WERN rating to "neutral" from "outperform",
reduces PT to 448 from $52 moderating consumer demand
    ** Also lowers PTs of J.B. Hunt Transport Services  JBHT.O 
to $187 from $189; Old Dominion Freight Line  ODFL.O  to $304
from $306; Saia Inc  SAIA.O  to $311 from $317; XPO Inc  XPO.N  
to $51 from $52; ArcBest Corp  ARCB.O  to $104 from $108
    ** Shares of KNX and WERN fall 2.7% and 1.56% premarket,
respectively

 (Reporting by Sruthi Narasimha Chari in Bengaluru)
 ((Sruthinarasimha.chari@thomsonreuters.com))