NEW YORK (TheStreet) -- Knight Transportation's (KNX) - Get Report stock rating was cut to "neutral" from "outperform" at Credit Suisse on Thursday morning. The firm also lowered its price target to $26 from $28.
The Phoenix-based company is a provider of truckload transportation and logistics services.
"While industry overcapacity and weak pricing continue to plague the overall TL industry, growing uncertainty surrounding consumer spending in 2H is likely to further crimp '16 EPS and push out a potential rebalance of supply/demand to 2017," the firm wrote in an analyst note.
As such, Credit Suisse no longer sees a compelling reason to own the stock in the near to medium term.
Additionally, the firm believes shares are at risk heading into second quarter results.
However, should the firm begin to see evidence of an inflection in the supply and demand equation or a sustainable upward trend in spot rates, it would be willing to revisit its investment thesis on the stock.
"We continue to believe that KNX is the best placed among its peers to take advantage of a recovery in the trucking sector given its superior operating profile, higher relative exposure to the spot market and ability to drive growth via M&A," Credit Suisse said.
Knight stock is down 0.3% to $26.91 on Thursday morning.
You can view the full analysis from the report here: KNX