Knight-Swift downgraded to Sell from Neutral at Citi

Citi downgraded Knight-Swift (KNX) to Sell from Neutral with an unchanged price target of $56. KNX, being the nation’s largest truckload carrier, arguably has the “most cyclical torque” to volume inflection as the end of the freight recession gives way to the upcycle, the analyst tells investors in a research note. However, the firm thinks elevated investor expectations create risks around a potential cycle infection. While Knight-Swift has arguably one of the best management teams to navigate through the freight recession, it faces prospects for significant multiple contraction going forward, which will likely erode any potential upside from earnings growth that investors appear to be anticipating, the analyst tells investors in a research note.