Knight-Swift, Schneider rise as Cowen upgrades on pricing power

Werner Enterprises

15/09/2021 14:18

** Shares of trucking companies Knight-Swift Transportation
 KNX , Schneider National  SNDR.K  and Werner Enterprises
 WERN.O  rise in premarket trading after Cowen upgrades stocks
to "outperform"
    ** Shares up between 2% and 3.6% in trading before the bell
    ** "We see pricing up mid-single digits which should
position TL names to have higher than expected EPS growth next
year," Cowen analysts say, adding that market is underestimating
the industry's ability to get pricing in 2022
    ** Cowen's upbeat outlook for next year follows outsized
pricing increases of 10-15% this year, while current consensus
views on '22 pricing remains ~flat to down
    ** Brokerage says a private company that manages over $12
bln of freight annually is preparing its customers for rate
increases 
    ** Cowen currently models 9% EPS growth for the group, ~6%
ahead of Street forecast
    ** S&P 1500 trucking sub-index  .SPCOMTRCK  up about 35% YTD
vs 18.3% rise on S&P 500  .SPX 

 (Reporting by Sruthi Shankar)
 ((sruthi.shankar@thomsonreuters.com;))