Knight-Swift upgraded to Buy from Neutral at Citi

Citi analyst Ariel Rosa upgraded Knight-Swift (KNX) to Buy from Neutral with a price target of $48, down from $53. Transports were already setting up for a difficult Q1 earnings season, even before the worse-than-expected tariffs on Wednesday, the analyst tells investors in a research note. The firm says that adding tariffs to the mix “now guarantees a more bearish and uncertain future through the remainder of 2025 and beyond, rendering prior outlooks largely irrelevant.” However, despite the uncertainty, the sharp selloff has made transport stocks more attractive on both an absolute and relative basis, contends Citi. The firm expects a downturn in freight demand will catalyze carrier exits and rationalize excess capacity. As such, it upgrade a handful of names in the sector.