NEW YORK (TheStreet) -- Werner Enterprises (WERN) - Get Werner Enterprises, Inc. Report stock was downgraded to "neutral" from "overweight" at JPMorgan this morning after announcing that 2016 second quarter earnings will likely fall short of analysts' estimates.
The firm cut its target price to $23 from $30 on the stock.
"We no longer believe Werner's balanced business mix versus peers supports a relative Overweight rating in a challenging truckload market," the firm noted.
Despite the downturn for Werner and its competitors like Swift (SWFT), JPMorgan is cautious about the stock but not entirely pessimistic about the truckload sector in general. The firm states that while it no longer holds any "overweight" ratings in the truckload sector, the analysts "remain patient, not structurally bearish on the cycle."
JPMorgan said the tides will turn for truckloading companies like Werner Enterprises in 2017, as the firm keeps an eye on metrics like demand, supply, rates and regulations to predict this positive change.
Shares of Werner Enterprises, an Omaha, NE transportation and logistics company, are falling 9.50% to $22.33 in early afternoon trading.
Separately, TheStreet Ratings objectively rated this stock as a Buy with a ratings score of B-. This is driven by some important positives, which TheStreet Ratings believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks TheStreet Ratings covers.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and notable return on equity. TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. You can view the full analysis from the report here: WERN