Aspire Biopharma faces potential Nasdaq delisting after compliance shortfall
Investing.com - BofA Securities upgraded Knight Transportation (NYSE:KNX) from Neutral to Buy and raised its price target to $50.00 from $41.00 on Thursday. The stock, currently trading at $44.20 with a market capitalization of $7.17 billion, has maintained dividend payments for 22 consecutive years, according to InvestingPro data.
The upgrade comes as BofA Securities identifies several supply-side catalysts that appear to be tightening truckload supply dynamics, including English Language Proficiency enforcement, limits on nondomiciled Commercial Drivers Licenses, and November 1 tariffs on imported heavy-duty trucks. The company’s current P/E ratio stands at 43.5x, reflecting market expectations for future growth.
BofA Securities increased its price objective based on a 24.0x multiple of revised 2026 estimated earnings, up from the previous 20.5x multiple, positioning the target at the higher end of Knight Transportation’s 14x-26x historical range as earnings are expected to recover from trough levels.
The firm raised its 2026 estimated earnings per share by 2% to $2.05 from $2.00, driven by improving spot rate dynamics in the trucking sector.
Knight-Swift Transportation, with trucking representing 67% of its revenue, is viewed by BofA Securities as a well-run truckload operator and a key beneficiary of the constructive truckload capacity dynamics, despite multiple false starts in the 3.5-year prolonged freight downcycle.
In other recent news, Knight-Swift Transportation Holdings Inc. reported its financial results for the second quarter of 2025. The company experienced a 1.9% increase in revenue, excluding the fuel surcharge, alongside a significant 17.2% improvement in adjusted operating income compared to the previous year. Despite these positive earnings results, the company’s stock saw a slight dip in premarket trading. Knight-Swift remains cautiously optimistic about a market recovery in the latter half of the year. Investors will be closely monitoring these developments as the company navigates the current economic environment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.