USX - U.S. Xpress called an idiosyncratic favorite at Morgan Stanley

Morgan Stanley keeps an Overweight rating on U.S. Xpress Enterprises (USX) after meeting with management. The firm says it continues to view USX as the most idiosyncratic story in trucking, which is called a good thing given the ongoing debate about the cycle peak. However, investors are advised to watch the Variant wildcard closely for big upside or big disappointment. Analyst Ravi Shanker: "Mgmt. has done a good job getting the story out to investors thus far and indeed the stock has had a strong run YTD, up nearly 70%. Even still, valuation hardly looks stretched here - the stock is only ~8x our FY22e EPS, comfortably below TL peers in the ~13x range and far below the broader transportation space at ~20x. However, unlocking the full potential of USX will come down to Variant which remains firmly a show-me story. Either the Variant rollout will be executed at 1,500

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U.S. Xpress called an idiosyncratic favorite at Morgan Stanley