"We are downgrading SWFT...given a weaker fundamental outlook as we expect ongoing yield and utilization pressure from available capacity industry wide," the firm wrote in an analyst note earlier today.
"Combined with additional pressure from softer used truck pricing, a rising fuel environment, and a smaller operational fleet, we anticipate full-year guidance to be cut," KeyBanc added.
The firm believes industry capacity is likely at a "peak" considering truck orders are below replacement, an inevitable reacceleration in fleet failures and expected regulatory drag in the second half of 2017.
This combined with relative valuation should provide downside support in a low-growth economic environment, according to KeyBanc.
The Phoenix-based transportation services company operates a fleet of truckload equipment in North America.
Swift is scheduled to report 2016 second quarter results after the market close on July 21.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and notable return on equity.
But the team also finds weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. 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: SWFT