DA Davidson maintains neutral Wabash National stock rating

Published 22/04/2025, 16:58
DA Davidson maintains neutral Wabash National stock rating

Tuesday, DA Davidson analysts reiterated a Neutral rating and maintained a $11.00 price target on Wabash National (NYSE:WNC) shares, which currently trades at $9.94. According to InvestingPro analysis, the stock appears fairly valued at current levels. The firm’s commentary followed the release of March US trailer-industry data by ACT Research, which analysts consider a significant indicator for Wabash National’s performance.

The data revealed a 63% year-over-year increase in orders for March, despite being measured against weaker comparisons from the previous year and current concerns over tariffs. However, backlogs decreased by 24% compared to the same month last year, marking the lowest March backlog since 2013, if 2020 is excluded. This decline in backlogs is seen as a potential concern for the company’s future production schedules, particularly given the company’s revenue decline of 23% over the last twelve months.

Additionally, shipment figures dropped by 25% year-over-year and declined by 28% for the quarter, aligning closely with DA Davidson’s estimates for the first quarter. The analysts expressed caution regarding Wabash National’s near-term prospects, citing the impact of tariff and macroeconomic uncertainties on freight fundamentals.

The analysts’ stance remains cautious on Wabash National stock, suggesting a wait-and-see approach until the current uncertainties in the market begin to clear. They emphasize the need for stability in freight fundamentals before adopting a more positive outlook on the company’s stock performance.

In other recent news, Wabash National’s financial landscape has seen significant developments. DA Davidson analysts upgraded Wabash National’s stock rating from Neutral to Buy, setting a new price target of $14.00. This decision followed the release of February trailer-industry data, which showed a 13% year-over-year decrease in orders and significant declines in backlogs and shipments. Despite industry challenges, DA Davidson noted potential benefits from proposed emissions-reduction policies that could positively impact Wabash’s market environment. In legal matters, a Circuit Court reduced punitive damages against Wabash from $450 million to $108 million, though compensatory damages remained at $11.5 million. Wabash National contends that the punitive damages are still excessively high and is considering further legal options. Additionally, DA Davidson had previously adjusted Wabash National’s price target from $18.00 to $14.00, maintaining a Neutral rating due to mixed industry signals and forecasts of a decrease in trailer shipments. Analysts expressed cautious optimism for a potential recovery in earnings by 2026, contingent on improved freight conditions.

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