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Benzinga
140 days

Knight-Swift Faces Pressure With Lack Of Freight Flows Amid Tariffs, Analyst Downgrades Stock

1. BofA downgraded KNX from Buy to Neutral, lowering the price forecast significantly. 2. Earnings estimates for FY25 and FY26 cut by 17% and 11%, respectively. 3. Truckload spot rates decline to $1.50/mile, indicating industry challenges. 4. KNX to reduce its truckload fleet by 1.5% in Q1, exceeding prior expectations. 5. Weather disruptions and tariff concerns impact freight flows and operations.

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FAQ

Why Very Bearish?

The downgrade and reduced forecasts suggest significant underlying issues, similar to past scenarios. For instance, other trucking companies like JB Hunt faced drops in stock value following similar analyst downgrades amid industry challenges.

How important is it?

The downgrade and reduced earnings outlook directly shift investor sentiment about KNX prospects.

Why Short Term?

Poor Q1 and Q2 performance is anticipated, reflecting immediate challenges. Historical examples show that analysts' downgrades often lead to short-term price declines.

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