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Positive Outlook for Werner Enterprises: Strong Bid Cycles, Stable Pricing, and Operational Improvements Drive Growth

Positive Outlook for Werner Enterprises: Strong Bid Cycles, Stable Pricing, and Operational Improvements Drive Growth

TD Cowen analyst Jason Seidl reiterated a Buy rating on Werner Enterprises (WERNResearch Report) today and set a price target of $40.00.

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Jason Seidl’s rating is based on several key factors that suggest a positive outlook for Werner Enterprises. Firstly, the company is expected to benefit from improved bid cycles and stable pricing in its Dedicated segment, with an anticipated uptick in One-Way pricing in the later part of 2025 and into 2026. This is expected to support margins alongside structural cost reductions and a recovery in used equipment prices.
Though the company faced a significant insurance claim that affected its fourth-quarter earnings, excluding this non-recurring charge, its adjusted operating income and operating ratio surpassed estimates. The Logistics segment also turned profitable, indicating operational improvements. Despite potential tariff impacts, Werner’s exposure to direct cross-border operations is limited, and the company is maintaining a cautious yet optimistic approach to fleet growth, expecting a favorable bid season and rate improvements ahead.

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