Wabash National stock target cut to $14 at DA Davidson

Published 24/02/2025, 13:00
Wabash National stock target cut to $14 at DA Davidson

On Monday, DA Davidson adjusted its financial outlook for Wabash National (NYSE:WNC), a manufacturer of semi-trailers and liquid transportation systems. With the stock currently trading at $12.12, analyst Michael Shlisky reduced the company’s price target from $18.00 to $14.00, while maintaining a Neutral rating. According to InvestingPro data, the stock has declined 53% over the past year and is trading near its 52-week low of $11.99. The adjustment follows the release of January U.S. trailer-industry data by CT Research, which Shlisky cited as a significant indicator for Wabash National’s performance.

The newly released data highlighted a 51% year-over-year increase in trailer orders for January, attributed to particularly weak comparisons from the previous year. However, this figure still places the month in the lower half when compared to the past 15 years of January data. Additionally, the report showed a 39% decline in backlogs and a 26% decrease in shipments compared to the same period last year. InvestingPro analysis indicates the company’s revenue declined by 23.25% in the last twelve months, though analysts expect profitability to improve this year.

The analyst pointed out that the freight industry’s fundamentals are currently inconsistent, with mixed signals regarding demand and efficiency. Industry forecasts, such as those from ACT Research, predict a high-single-digit percentage decrease in trailer shipments across the industry for 2025. Shlisky expressed a cautious stance on Wabash National, noting that while there is hope for market conditions to improve, there has not been substantial evidence of a positive shift thus far. For deeper insights into Wabash National’s financial health and growth prospects, including 13 additional ProTips and comprehensive valuation metrics, visit InvestingPro.

In other recent news, Wabash National Corporation’s fourth-quarter 2024 earnings report revealed a net loss of $1 million, or -$0.02 per diluted share, missing the forecasted EPS of $0.13. The company’s revenue also fell short, coming in at $417 million against a projection of $440.72 million. In response to these results, DA Davidson maintained its Neutral rating on Wabash National with a price target of $18.00, citing a challenging outlook for the year ahead and potential impacts from legal expenses and variable compensation. Despite these challenges, DA Davidson anticipates a possible recovery in earnings by 2026, contingent on improved freight conditions. Additionally, Wabash National announced the acquisition of TrailerHawk.ai to enhance its Trailers as a Service (TaaS) platform, aiming to provide improved cargo security and operational efficiency for logistics providers. The acquisition aligns with Wabash’s strategy to integrate physical and digital technologies, further supported by the appointment of Brett Suma, founder and CEO of TrailerHawk.ai, to the Wabash team. In another development, Wabash National declared a regular quarterly dividend of $0.08 per share, scheduled for distribution on April 24, 2025, to shareholders on record as of April 3, 2025.

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