Knight-Swift shares off; BofA downgrades due to weather, tariffs

Knight-Swift Transportation Holdings

01/04/2025 15:27

** Shares in Knight-Swift Transportation Holdings KNX.N down 2.2%, hitting lowest level since Feb. 2021; BofA downgraded the stock, cut EPS view for Q1, Q2 citing Q1 weather and late quarter "shipper paralysis given lack of freight flows surrounding tariffs"

** BofA analyst Ken Hoexter cut rating of the trucking company to 'neutral' from 'buy' and cut price objective to $46 from $66

** Hoexter also slashed his 1Q25 EPS estimate 35% to $0.20 and cut his Q2 est 20% to $0.38/shr, which he notes is below KNX's own target range off $0.29-$0.33 for Q1 and its $0.46-$0.50 range for Q2 vs Street's $0.30 Q1 est, Q2 est of $0.46

** And with estimates under pressure Hoexter also reduced valuation target to 28x revised 2025 EPS estimate down from  previous multiple target of 33x

** KNX last traded at $42.54 after touching low of $42.34

** Median PT for stock is $63, down from $64 month ago, as per LSEG, which shows 22 analyst ratings: 4 'strong buy,' 8 'buy,' 9 'hold' 1 'sell'

** KNX down 19.8% YTD after falling 8% in 2024 vs 17% drop YTD for S&P 400 ground transportation index .SPMDCRAR after 6% gain in 2024

 (Reporting By Sinéad Carew)

 ((sinead.carew@thomsonreuters.com; +13322191897;))