Stifel initiates coverage of truckload, intermodal cos

Marten Transport

06/04/2018 17:33

** Stifel initiates coverage of trucking sector, rating both
truckload and intermodal cos
    ** Rates following cos "buy"; Daseke Inc  DSKE.O , USA Truck
Inc  USAK.O , Werner Enterprises Inc  WERN.O 
    ** Issues "hold" recommendations for: JB Hunt Transportation
Services Inc  JBHT.O , Knight-Swift Transportation Holdings Inc
 KNX.N , Marten Transport Ltd  MRTN.O , Heartland Express Inc
 HTLD.O , and Hub Group Inc  HUBG.O    
    ** In the face of strong freight market and capacity
shortages, lead analyst David Ross sees double-digit truckload
increases in 2018, expects rates to grow 12 pct y/y in 2018, on
average
    ** Current lack of truck drivers gives asset-based carriers
"best hand at the bargaining table," writes Ross; believes
industry regulation will be "long-term constraint on interstate
truckload industry capacity"
    ** USAK up 3.3 pct. DSKE shares down 0.2 pct. Werner
Enterprises down 3.4 pct
    ** Meanwhile, JBHT, KNX, MRTN, HTLD, HUBG stocks fall in 1.5
pct to 4 pct rage
    ** The S&P 1500 Trucking index  .SPCOMTRCK , down 2.9 pct
Friday amid China trade war worries.  urn:newsml:reuters.com:*:nL4N1RI3S2 Trucking index
has dropped ~1.2 pct YTD, slightly outperforming the broader S&P
500  .SPX , down ~1.8 pct over the same period

 (Reporting by Stephen Culp)
 ((stephen.culp@thomsonreuters.com; 646-223-6076;))