Knight-Swift: Near-Term Headwinds but Strengthening 2026 Earnings Power Support Buy Rating

In a report released today, Christopher Kuhn from Benchmark Co. maintained a Buy rating on Knight Transportation, with a price target of $60.00.

Christopher Kuhn has given his Buy rating due to a combination of factors that, in his view, position Knight-Swift favorably despite the recent quarter’s revenue and EPS shortfall. He notes that first-quarter 2026 guidance suggests a generally stable operating backdrop, with normal seasonal slowing in Truckload but early indications of improving LTL volumes, and he views current guidance as conservative because it does not yet incorporate potential gains from the upcoming bid season. Kuhn also emphasizes that, while revenue in key segments lagged expectations, disciplined cost management allowed Truckload profitability to surpass his forecasts, underscoring enhanced operating leverage versus prior freight cycles. Management’s commentary around customer negotiations, which currently point to mid-single-digit price increases depending on market conditions, further supports his constructive stance.

At the segment level, Kuhn acknowledges that LTL demand remained soft and modestly underperformed his profit expectations, but he highlights accelerated cost actions and a strategy designed to preserve the company’s ability to capture growth when volumes recover. He points to several structural and cyclical drivers that could make 2026 materially stronger: ongoing capacity exits in Truckload that are already improving network balance, significant cost reductions that are generating earnings growth even on lower revenue, and the prospect of LTL margins rebounding as shipment growth catches up with earlier network expansion. Additionally, he cites macro supports such as normalized inventories after solid holiday sales and potential tailwinds from tax policy and possible Federal Reserve rate cuts. Taken together, these factors lead Kuhn to view any share price weakness as a buying opportunity and to reaffirm his Buy recommendation on KNX.

In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $61.00 price target.

Based on the recent corporate insider activity of 48 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 KNX in relation to earlier this year.