Werner initiated with an Underweight at Wells Fargo

Wells Fargo initiated coverage of Werner Enterprises with an Underweight rating and $38 price target. Werner’s evolution toward dedicated drove fleet growth through the cycle, the analyst tells investors in a research note. The firm says that while favorable long-term, it prefers greater leverage to a truckload recovery at this point in the cycle. It says the company’s consensus estimates are optimistic and the stock’s valuation remains elevated.