UPDATE: Stifel Nicolaus Reduces PT to $17 on Fuel Cost and Volume Deceleration
Stifel Nicolaus reiterated its Buy rating on Knight Transportation (NYSE: KNX) but reduced its price target from $18 to $17.
Stifel Nicolaus noted, "The reduction to our 3Q12 EPS estimate is related to fuel prices that have increased 13% during the quarter as well as to reflect volumes that have slowed in the industry. The downward revisions to our 2013 and 2014 EPS estimates reflect an expectation for even more modest economic growth (i.e., ~1.0%-1.5% annual GDP growth) relative to what we were previously assuming. We note that seven companies under our transportation and logistics coverage have now negatively preannounced 3Q12 EPS, with most citing rising fuel prices and decelerating volume."
Knight Transportation closed at $14.70 on Wednesday.
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