JPMorgan upgrades Knight-Swift to Neutral on better U.S. Xpress narrative

JPMorgan upgraded Knight-Swift to Neutral from Underweight with a price target of $57, up from $54, following the Q3 repot. The U.S. Xpress Enterprises acquisition is showing progress sooner than expected and in a very difficult truckload market, the analyst tells investors in a research note. The firm expects Knight-Swift will be able to hang on to most of its 16% post-market share gains on the U.S. Xpress narrative “shifting to be less negative.” JPMorgan believes a Neutral rating is warranted for Knight-Swift considering a 2024 spot and contract rate inflection “is not guaranteed.” It adds that another step down in rates is needed to flush excess capacity from the market.