Jordan Alliger, an analyst from Goldman Sachs, maintained the Sell rating on Werner Enterprises (WERN – Research Report). The associated price target was lowered to $37.00.
Jordan Alliger has given his Sell rating due to a combination of factors concerning Werner Enterprises. The company faced a notable shortfall in its first-quarter earnings per share for 2024, which was significantly below both Goldman Sachs’ estimate and the consensus. The total revenue was down by 3% compared to expectations, while the consolidated adjusted operating ratio, excluding fuel costs, fell short of projections by 150 basis points, leading to a substantial miss in expected earnings before interest and taxes. This underperformance is indicative of underlying operational and market challenges that affect the company’s financial health.
Additionally, the report indicates that while there is potential for improvement in the latter half of 2024, this is contingent on certain economic conditions that are currently not in favor, such as inventory restocking and normalized seasonal demand. There is also concern over the synchronization of volume and price recovery, potentially delaying a full rebound until 2025. Moreover, higher-than-anticipated expenses in relation to revenue have amplified margin pressures, particularly within Werner’s logistics segment, which deteriorated from a positive to a negative earnings before interest and taxes in the first quarter of 2024. These factors collectively contribute to the rationale behind Alliger’s Sell rating for Werner Enterprises’ stock.
In another report released yesterday, Bank of America Securities also assigned a Sell rating to the stock with a $31.00 price target.
WERN’s price has also changed slightly for the past six months – from $36.420 to $34.200, which is a -6.10% drop .
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Werner Enterprises (WERN) Company Description:
Werner Enterprises, Inc. engages in the provision of logistics services. It operates through the Truckload Transportation Services and Werner Logistics segments. The Truckload Transportation Services segment consists of one-way truckload and specialized services units such as the medium-to-long haul van fleet which provides a consumer non durable products and commodities in truckload quantities. The Werner Logistics segment provides non-trucking services to customers such as truck brokerages which uses contracted carriers to complete customer shipments. The company was founded by Clarence L. Werner in 1956 and is headquartered in Omaha, NE.
