Loop downgrades Knight-Swift with freight demand ‘pretty devoid’

Loop Capital last night downgraded Knight-Swift (KNX) to Hold from Buy with a price target of $53, down from $63. While CSX’s (CSX) results held up reasonably well in an economy “pretty devoid of freight demand,” Knight-Swift “is in a very different place, with a profit warning on Wednesday,” the analyst tells investors in a research note. The firm says the demand picture “suggests the bottom might still be ahead of us.” In addition, Knight-Swift recent missteps “have taken the shine off their best-in-class reputation,” contends Loop. The firm is moving to the sidelines until the U.S. freight economy “begins to organize itself in a more constructive manner.”