In a report released yesterday, Ken Hoexter from Bank of America Securities reiterated a Sell rating on Werner Enterprises (WERN – Research Report), with a price target of $26.00.
Ken Hoexter has given his Sell rating due to a combination of factors affecting Werner Enterprises. The company reported a significant earnings miss in the first quarter, with an adjusted loss per share of -$0.12, which was below both the analyst’s and the market’s expectations. This underperformance was attributed to several challenges including adverse weather conditions, increased insurance costs, IT expenditures, and inefficiencies related to tariffs.
Furthermore, Werner Enterprises faces ongoing pressure in its One-Way Truckload segment, which constitutes a substantial portion of its operations. The demand in this segment has been weak due to tariff uncertainties, leading to margin compression. Although the company’s Dedicated operations have secured new contracts, the revenue per tractor fell short of targets, indicating potential difficulties in maintaining profitability. Additionally, disruptions from tariff-related volume volatility at the Mexico border and West Coast have further complicated Werner’s operational landscape, prompting a cautious outlook and a lowered price objective.