Citigroup Upgrades Knight Transportation on Potential Acquisition
In a report released Thursday morning, Citigroup analyst Christian Wetherbee upgrades Knight Transportation (NYSE: KNX) to BUY from NEUTRAL, increasing price target from $17 to $22.
Citigroup cited two potential catalysts for their upgrade, "First; Knight appears intent on resuming growth in ‘14 and may use an acquisition to get it. While it remains involved with USA Truck (NASDAQ: USAK), valuation sensitivity may prevent the deal from being complete, but Knight could refocus attention to another target. Second; we believe continued economic growth and Hours of Service restricted capacity could drive improvement in TL fundamentals, potentially aiding yield growth and margins."
KNX closed Wednesday at $18.66 and is currently trading up at $18.93.
Latest Ratings for KNX
|Nov 2016||Deutsche Bank||Initiates Coverage On||Hold|
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