UPDATE: Bank of America Downgrades Werner Enterprises on Multiple 3Q Challenges
In a report published Tuesday, Bank of America analyst Ken Hoexter downgraded the rating on Werner Enterprises (NASDAQ: WERN) from Buy to Neutral, and lowered the price target from $25.00 to $24.50.
In the report, Bank of America noted, “The environment for truckload carriers was dealt a difficult scenario in 3Q, given rising costs, new hours of service rule changes, decreased utilization due to the new rules, lower used truck demand due to lower miles driven, and lack of driver availability. We expect to see the bar for 3Q targets get reset a bit lower across the board. However, one offsetting factor was noticeably absent, specifically improving demand. In concert with a weak back-to-school season, 3Q was compounded by multiple rising costs. Alternatively, we have seen some life on the demand side, as exemplified in our recent truck shipper survey, which last week posted its largest bounce since June.”
Werner Enterprises closed on Monday at $24.41.
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