UPDATE: Citigroup Downgrades Werner Enterprises to Neutral on Freight Weakness

Citigroup reduced its rating on Werner Enterprises

from Buy to Neutral and lowered its price target from $27 to $24. Citigroup commented, "We are lowering ratings on … Werner .. to Neutral, from Buy, as rising operating expenses are too big a challenge to overcome in a soft freight environment. … We are decreasing our 3Q12, 2012 and 2013 EPS estimates by 22%, 10% and 8%, to $0.34, $1.43 and $1.65, from $0.44, $1.59 and $1.80 as a result of lackluster freight volumes and longer-term margin pressures, primarily from driver wage inflation and higher equipment costs. " Werner Enterprises closed at $23.67 on Thursday.