Knife River downgraded to Underweight from Equal Weight at Wells Fargo

Wells Fargo downgraded Knife River (KNF) to Underweight from Equal Weight with a price target of $81, up from $75. The stock’s valuation “looks rich” relative to the company’s new 2026 guidance, the analyst tells investors in a research note. Wells sees risk for Knife River from its “lower margin” backlog, tougher compares, the surface transportation bill expiration, and Oregon regulatory uncertainty. It believes the shares overreached to the upside on the company’s Q4 report.