SAIA - Trucking stocks trade in red; Morgan Stanley revisits LTL sector

Trucking stocks were trading in red on Wednesday, with the S&P 500 Trucking Index (SP500-20304020) down ~11% and the Nasdaq Combined Transportation Index (TRAN) down over 5%. According to a Bloomberg report, trucking and logistics stocks fell amid weak outlook from retailers, including Target (TGT), which saw higher fuel and freight costs in Q1.  Meanwhile, Morgan Stanley lowered price targets on LTL stocks, taking into account Q1 earnings. But it remains fairly bullish on the sector. "Despite Q1 being seasonally weaker, LTLs posted a string of beats across the board," analyst Ravi Shanker wrote in a note to clients. He said management of LTL firms seem confident of maintaining pricing through downturn. While outlook is optimistic, these stocks mostly declined since the year started. "Bulls see the sell-off as a good opportunity to revisit LTL names, while bears still see plenty of room for the stocks to mean-revert to pre-pandemic levels," Shanker added. Saia

For further details see:

Trucking stocks trade in red; Morgan Stanley revisits LTL sector