Citi analyst Ariel Rosa downgrades $Werner Enterprises (WERN.US)$ to a sell rating, and adjusts the target price from $49 to $34.
According to TipRanks data, the analyst has a success rate of 74.8% and a total average return of 19.8% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Werner Enterprises (WERN.US)$'s main analysts recently are as follows:
The firm's expectations for Werner's earnings per share in the truckload segment for Q3 have been adjusted downwards due to a more cautious forecast for margin improvement during the quarter. This outlook is shaped by largely stable revenue per mile projections coupled with a general increase in operating ratio expectations, indicating a persistence of below-seasonal quarter-over-quarter margin performance.
The transport and logistics sector is anticipated to be emerging from a cyclical downturn, with current rates and margins suggesting that they are nearing the bottom. This sets the stage for potential robust earnings growth in 2025 and 2026 as rates begin to rebound. The optimistic outlook is reinforced by the belief that many companies in this industry possess strong leadership teams known for their prudent management of capital. Additionally, the irreplaceable and critical nature of transportation services to the North American economy is seen as a mitigating factor against disruption or replacement. Analysts recommend that investors position themselves to take advantage of the expected cyclical recovery, favoring companies that could disproportionately benefit from tightening freight conditions. However, there are concerns that some companies, particularly those with significant exposure to dedicated truckload services, may not initially see the benefits from an upturn in rates.
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