Cowen

Some Class I railroads optimistic about volume growth, hiring initiatives

U.S. Class I railroads remain optimistic that hiring initiatives and operational changes should bring about improved service for the remainder of the year and into 2023, according to top executives’ remarks at a recent investor conference.

“We’re in pretty smooth sailing for the rest of the fall, and I expect continuous improvement in terms of increasing car velocity, improved utilization of crews and improved car-per-carload metrics,” said Union Pacific (NYSE: UNP) President and CEO Lance Fritz...

https://www.freightwaves.com/news/some-class-i-railroads-optimistic-about-volume-growth-hiring-initiatives

Q1 rail earnings preview: Service metrics, headcount, macro uncertainties

A photograph of a freight train traveling by a rail crossing. A guard rail on the road is down to protect motorists.

As the Class I railroads gear up for earnings season this week and next, commentary about the first quarter of 2022 will likely include discussion about how the railroads’ recent hiring initiatives will translate into improving service metrics in the second half of the year.

However, a potential softening in freight transportation demand plus higher inflation rates are market factors that could weigh on the second half of 2022. Meanwhile, the railroads also face potential regulatory scrutiny...

https://www.freightwaves.com/news/q1-rail-earnings-preview-service-metrics-headcount-macro-uncertainties

Trucking: Cowen cuts estimates over ‘growing concerns for carriers’

Cowen lowers estimates ahead of Q1 earnings season

Incremental capacity, cooling demand and plummeting spot rates were the catalysts for another analyst to reel in expectations for trucking companies. On Thursday, Cowen’s Jason Seidl lowered earnings estimates for the truckload and less-than-truckload carriers he follows heading into the first-quarter earnings season, which starts Monday.

He advised clients to favor large-cap TL carriers versus the smaller carriers, downgrading Covenant Logistics Group (NASDAQ: CVLG) to “market perform” from...

https://www.freightwaves.com/news/trucking-cowen-cuts-estimates-over-growing-concerns-for-carriers

Congestion, weather and chip shortages cloud rail’s outlook: Cowen

A photograph of intermodal containers on a rail track.

Supply chain congestion, weather-related incidents such as wildfires and Hurricane Ida, and ongoing automotive production challenges could force the Class I railroads to revise their financial outlooks for 2021, according to a note from investment firm Cowen.

“We revise our rail carloadings and reflect cost implications to lower our Q3 rail estimates below consensus forecasts; we see Q3 consensus as stale and see further downward revisions. Given network challenges, we see a scenario where rails...

https://www.freightwaves.com/news/congestion-weather-and-chip-shortages-cloud-rails-outlook-cowen

Surging container rates, semiconductor shortage only blips on radar for Arrival, ELMS

Two electric van startups are facing different challenges in the months ahead, but at least one analyst remains supportive of both firms’ long-term potential.

Electric Last Mile Systems (ELMS) will be first out of the gate with its Class 1 electric van, but shipping costs could alter the pricing dynamics for customers, according to research firm Cowen. Conversely, Arrival (NASDAQ: ARVL) will take longer to bring its vehicles to market, but as a result should avoid the peak of the global...

https://www.freightwaves.com/news/surging-container-rates-semiconductor-shortage-only-blips-on-radar-for-arrival-elms

Unions, industry observers weigh in on KCS merger bids

Rail stakeholders and observers are weighing in on how competing attempts by Canadian Pacific (NYSE: CP) and CN (NYSE: CNI) to merge with Kansas City Southern (NYSE: KSU) might affect the freight rail industry. 

Both CN and CP are seeking to acquire Kansas City Southern (KCS). CP and KCS had announced in March plans to merge, prior to CN announcing in April that it is also interested in acquiring KCS. 

CP and CN are also both Canadian railways, and each merger proposal with KCS would create a...

https://www.freightwaves.com/news/unions-industry-observers-weigh-in-on-kcs-merger-bids

Arrival taps HERE Technologies for electric-van routing

Arrival chooses HERE for navigation software

The routing of electric vehicles is extremely critical to maximize miles due to range limitations. Go too far out of route and that vehicle may not make it back to the depot at the end of the day.

Arrival (NASDAQ: ARVL), which has burst onto the scene with its electric delivery vans, buses and soon-to-be-developed cars, has chosen HERE Technologies to solve that routing complexity.

“We are extremely proud to be partnering with Arrival on tackling the challenge of our times – zero-emissions...

https://www.freightwaves.com/news/arrival-taps-here-technologies-for-electric-van-routing

Cowen: Arrival’s unique approach sets up opportunity in EV space

Cowen begins coverage of EV startup Arrival

Cowen has initiated coverage of electric vehicle startup Arrival (NASDAQ: ARVL), labeling the firm with an outperform rating and setting a price target of $28.50 per share.

The company went public on March 25 through a merger with special purpose acquisition company (SPAC) CIIG Merger Corp. The stock price has dropped from nearly $25 per share to $15.40 in midmorning trading Monday since then. Still, Cowen sees upside in the company’s approach, calling it unique.

“We are constructive on Arrival’s...

https://s29755.pcdn.co/news/cowen-arrivals-unique-approach-sets-up-opportunity-in-ev-space

5 Wall Street impressions about proposed CP-KCS merger

A photograph of a Kansas City Southern locomotive.

Canadian Pacific (NYSE: CP) announced plans to acquire Kansas City Southern (NYSE: KSU) for $29 billion on Sunday morning. Here are five initial impressions from Wall Street transportation analysts about this proposed transaction.

Wall Street likes the deal

The merger of CP and Kansas City Southern (KCS) would be combining two of the smallest Class I railroads. It would also be integrating two railroads that are striving to reach an operating ratio (OR) in the mid-50s. OR, represented in a...

https://s29755.pcdn.co/news/5-wall-street-impressions-about-proposed-cp-kcs-merger

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