Analyst Ravi Shanker from Morgan Stanley maintained a Buy rating on Knight Transportation and keeping the price target at $67.00.
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Ravi Shanker has given his Buy rating due to a combination of factors that highlight Knight Transportation’s potential for growth despite some initial concerns. The company’s third-quarter results met expectations and surpassed consensus when adjusted for certain charges, indicating underlying strength. Although the fourth-quarter guidance appeared conservative, it did not account for potential peak opportunities and supply-side constraints that management highlighted as future growth catalysts.
Shanker notes that while the adjusted EPS was slightly below expectations, it included unusual items that, when accounted for, demonstrated a stronger performance than initially perceived. The management’s optimistic commentary about supply-side improvements and demand opportunities suggests significant upside potential. This positive outlook, combined with the company’s strategic positioning to benefit from an industry upcycle, supports the Buy rating.
Shanker covers the Industrials sector, focusing on stocks such as Knight Transportation, ArcBest, and CH Robinson. According to TipRanks, Shanker has an average return of -2.2% and a 47.14% success rate on recommended stocks.
In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $53.00 price target.