Citi adds Knight-Swift to catalyst watch

Investing.com -- Citi has added Knight-Swift Transportation to its catalyst watch list, citing potential upside to second-half and full-year 2025 earnings as industry conditions evolve.

“While economic disruptions and tariff uncertainty during 2Q25 are likely to keep current-quarter results within the company’s guidance range of $0.30–$0.38 in EPS, we see potential upside to 2H25 and full-year earnings,” Citi analysts wrote in a note.

The bank emphasized Knight-Swift’s positioning within the industry, noting the company’s strength in irregular route freight.

“Given its more limited dedicated business coupled with its higher exposure to one-way irregular route freight, we believe it is among the best-positioned companies to capitalize on tightening truckload capacity,” the analysts said.

Citi reiterated its Buy rating on the stock, which it upgraded last month. Although the firm left its 2025 and 2026 adjusted EPS estimates unchanged at $1.50 and $2.60, respectively, it raised its price target to $53 from $48, citing an increase in the target price-to-earnings multiple from 32x to 35x on 2025 estimated earnings.

“We believe this elevated multiple is warranted given the potential inflection in the rate environment,” Citi wrote.

The firm also highlighted the opportunity for earnings acceleration as industry dynamics shift.

“With KNX margins at historically low levels, we believe earnings growth could accelerate significantly as the truckload rate environment eventually improves,” analysts added.

You May Also Be Interested In

• JPMorgan and Goldman raise dividends after Fed stress tests
• Knight Transportation (KNX) PT Raised to $86 at Goldman Sachs
• TD Cowen cuts Flowserve to Hold, flags guidance reset risk amid Mideast woes