Labor constraints to cap growth in the trucking sector - KeyBanc

Werner Enterprises

09/08/2021 14:28

** KeyBanc says the ongoing labor constraints will hit the
growth of the U.S. trucking industry, downgrading Werner
Enterprises  WERN.O  and Marten Transport  MRTN.O  to "sector
weight" from "overweight"
    ** "With truckload industry employment decoupling from
increasing wages, we now expect labor constraints to limit
earnings upside despite favorable pricing dynamics" - KeyBanc
    ** Along with potential cost inflation, the most prevalent
risks currently facing WERN and MRTN include the cyclical and
economically sensitive nature of trucking demand - brokerage
    ** Brokerage, however, maintains positive stance on JB Hunt
Transport Services  JBHT.O , Schneider National  SNDR.N , and
Hub Group  HUBG.O , saying their growth is not restricted by
labor availability to the same extent as the rest of the market

 (Reporting by Tapanjana Rudra)