Ken Hoexter, an analyst from Bank of America Securities, reiterated the Sell rating on Werner Enterprises. The associated price target was raised to $40.00.

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Ken Hoexter has given his Sell rating due to a combination of factors tied to Werner’s earnings mix and contract structure. While truckload operations outperformed expectations and are benefiting from early-stage supply-driven recovery and solid rate increases, these gains were largely offset by weaker-than-expected Logistics results and other operating losses, leaving overall EPS only in line with his forecast and still below broader market expectations.

Hoexter also highlights that Werner is lowering its fleet growth ambitions but simultaneously increasing capital spending for equipment replacement and pre-buying ahead of emissions changes, which could pressure returns in the near term. Although he lifts his price objective to $40 on recovering earnings and a constructive supply backdrop, he applies a more moderate valuation multiple and remains cautious, noting that the company’s Dedicated contracts may delay full realization of pricing and productivity benefits, justifying the continued Underperform (Sell) stance.

In another report released on July 14, J.P. Morgan also maintained a Sell rating on the stock with a $37.00 price target.