Heartland Express downgraded to Underweight from Neutral at JPMorgan

JPMorgan downgraded Heartland Express to Underweight from Neutral with a price target of $10, down from $12. The firm does not see the freight market quickly deteriorating but its updated industry view suggests a “lower for longer market is here to stay for a while.” This will make it more difficult for the company to improve margins in the Smith and CFI acquisitions, the analyst tells investors in a research note. addition, Heartland typically generated earnings leverage through selling used equipment which will likely be a headwind in 2025 versus peers given that the company has not purchased any new tractors that it might use for trade-ins next year, contends JPMorgan.