Knight-Swift resumed with a Strong Buy at Raymond James

Raymond James resumed coverage of Knight-Swift with a Strong Buy rating and $58 price target. Raymond James sees Knight-Swift as one of the most idiosyncratic stories under the firm’s transport coverage with its entrance into the structurally sounder LTL space even though the market inflection will take more time to develop given a cloudy demand environment and still resilient truckload supply base, the analyst tells investors in a research note. The opportunity within Knight-Swift’s LTL business remains vast as it has ample white space to build into a national network, yielding a volume, pricing, and margin catchup story to other publicly held LTLs, and Raymond James sees a compelling risk/reward setup.