Stellantis cancels Ram 1500 electric pickup citing weak demand
Investing.com - William Blair downgraded Proficient Auto Logistics (NASDAQ:PAL) from Outperform to Market Perform on Friday, citing concerns about slowing new car sales and rising dealer inventory levels. The stock, currently trading at $7.72, has declined nearly 55% over the past year according to InvestingPro data.
The research firm expressed worry that weaker volume and pricing trends could persist well into 2026, driven by high interest rates, inflation, and deteriorating consumer confidence. William Blair also noted caution regarding a potential drop in electric vehicle demand as the $7,500 federal EV credit is set to expire on September 30. While the company isn’t currently profitable, InvestingPro analysis indicates expected profitability in 2025 with projected earnings of $0.27 per share.
While lower interest rates might eventually stimulate pent-up demand, the firm believes any relief could take several quarters to materialize. Given Proficient Auto Logistics’ high fixed costs combined with softer top-line expectations, William Blair anticipates pressure on the company’s operating ratio until the second half of 2026.
The downgrade reflects a cautious near-term stance despite William Blair maintaining a positive outlook on Proficient Auto Logistics’ long-term self-help initiatives and market share growth opportunities.
The firm cited the uncertain macroeconomic environment, low stock float, and high revenue cyclicality as additional factors contributing to its more conservative rating on the auto logistics company. According to InvestingPro analysis, the stock appears undervalued at current levels, with multiple additional insights and a comprehensive Pro Research Report available for subscribers looking to make informed investment decisions.
In other recent news, Proficient Auto Logistics reported a strong financial performance for the second quarter of 2025, with operating revenue reaching $115.5 million. This represents a 21.4% increase quarter-over-quarter and an 8.4% increase year-over-year. The company’s adjusted EBITDA for the same period was $11.3 million, aligning with both Stifel’s estimates and consensus expectations. Stifel has adjusted its price target for Proficient Auto Logistics to $13.00 from $14.00 while maintaining a Buy rating. Raymond James also raised its price target to $13.00 from $12.00, maintaining an Outperform rating. Raymond James highlighted the company’s unique position to benefit from a recovering auto market and potential internal improvements. These recent developments indicate a positive outlook for Proficient Auto Logistics, with analysts noting its potential to leverage market conditions effectively.
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