Analyst Jason Seidl from TD Cowen reiterated a Buy rating on Covenant Logistics Group and increased the price target to $35.00 from $30.00.
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Jason Seidl has given his Buy rating due to a combination of factors tied to both company execution and an improving trucking cycle. He expects Covenant’s truck count to stabilize in the second quarter and then grow into the back half of the year, with tightening capacity and regulatory-driven supply exits supporting better pricing in both the Expedited and Dedicated segments.
He also notes that, despite weather and fuel headwinds in early 1Q, earnings slightly exceeded his reduced forecast and trends improved as the quarter progressed, with early second-quarter indicators looking favorable. Stronger-than-expected performance in Managed Freight, rising demand for Dedicated capacity, and anticipated margin recovery as utilization improves all underpin his higher $35 price target and reaffirmed Buy recommendation.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CVLG in relation to earlier this year.