Citizens reiterates Knight Transportation stock rating on freight outlook

Citizens has kept its Market Outperform rating and $90.00 price target on Knight Transportation shares (NYSE:KNX), with the stock currently trading at $66.73 and showing potential upside of 35% to the price target. Analysts note that the stock appears slightly overvalued compared to its Fair Value, but the consensus rating remains at Outperform with targets ranging from $57 to $100.

The Federal Reserve of Chicago suggests that inflation is slightly above longer-term targets but is expected to decrease over the next year, while the economy is on track to achieve target growth rates for real GDP and employment. Freight sector company management reported slow but target-aligned volume growth, with rising rates and pricing.

Knight Transportation has seen revenue growth of 4% over the past year, delivering a 28% return year-to-date. The firm cites 15 analysts revising earnings upward, with revenue growth of 9% expected in fiscal 2026. Companies are considering driver wage adjustments to attract higher-quality drivers, with the applicant pool at the high-end down 14%.

Despite the market outlook, most companies have not increased capital budgets in 2026. Knight-Swift Transportation Holdings reported adjusted earnings per share of $0.63 in Q2 2026, surpassing estimates. This period shows varying expectations and performance across different companies and segments in the trucking industry.