UBS

Analysts all in on transportation stocks; transition to services spending no threat

Transport stocks looking up, according to analysts

A couple of bullish reports this week highlight reasons to favor transportation stocks moving forward. The outlooks call for favorable freight fundamentals around demand, utilization and pricing to remain in place for the foreseeable future.

Consumer demand not likely to wane anytime soon

UBS (NYSE: UBS) transportation analyst Tom Wadewitz said he sees a “perfect storm” for freight demand, pointing to tight capacity, inventory rebuilding and a steady stream of stimulus money. “The combination of...

https://www.freightwaves.com/news/analysts-lean-in-on-transport-stocks-spending-on-services-not-a-threat

Can the market get better? — Great Quarter, Guys

Great Quarter Guys 11/17

Andrew Cox and Seth Holm attempted to answer UBS analysts Tom Wadewits and Alex Johnson’s question, “Can the market get any better?” on this episode of Great Quarter, Guys. They talked about the retail shift from wholesale to direct-to-consumer business models and the impacts of truckload stock downgrades. 

First up on “you care or nah?”, Adidas is aiming at being 50% direct to consumer by 2025, trying to catch up to Nike and Lululemon as leading athletic wear brands. Both Cox and Holm care and...

https://www.freightwaves.com/news/can-the-market-get-better-great-quarter-guys

The Daily Dash: LTLs on the rise; strong freight fundamentals remain in place for 2021

The Daily Dash is a quick look at what is happening in the freight ecosystem. In today’s edition, UBS has initiated coverage on several less-than-truckload carriers, and it is seeing favorable conditions moving forward for the sector. Plus, U.S. Xpress executives see the fundamentals for a strong freight market staying in place well into 2021, and a new SPAC is targeting transportation and logistics companies in America’s heartland.

LTL’s sunny forecast

The less-than-truckload carriers got...

https://www.freightwaves.com/news/the-daily-dash-ltls-on-the-rise-strong-freight-fundamentals-remain-in-place-for-2021

Interest in LTL industry gains momentum

UBS' Wadewitz sees favorable outlook for LTL carriers

The less-than-truckload carriers got another bull in their camp on Tuesday when UBS (NYSE: UBS) freight transportation analyst Tom Wadewitz initiated coverage on the sector with a favorable outlook.

In a report to clients, Wadewitz launched coverage of Old Dominion Freight Line (NASDAQ: ODFL) and XPO Logistics (NYSE: XPO) with “buy” ratings and Saia (NASDAQ: SAIA) with a “neutral” rating. He pointed to rebounding industrial activity as supportive of his forecast for tonnage growth of 5% in 2021...

https://www.freightwaves.com/news/interest-in-ltl-industry-gains-momentum

UBS 2021 outlook calls for healthy freight flows in first half

UBS sees the most upside in shares of FedEx and UPS

UBS (NYSE: UBS) freight transportation analyst Tom Wadewitz sees a favorable freight setup in the first half of 2021. His expectations for the year were laid out on a conference call with clients Thursday reviewing his outlook report published earlier in the day.

The call is for “a combination of rising growth in freight activity plus strong pricing to support strong EPS performance and upside for the transport group in 2021.” He believes the stocks with the most upside are FedEx (NYSE: FDX) and...

https://s29755.pcdn.co/news/ubs-2021-outlook-calls-for-healthy-freight-flows-in-first-half

Used truck sales recovery firming up for all players

Used truck pricing pressure is easing as stakeholders from manufacturers to dealers report growing sales momentum despite the lingering pandemic — and because of it.

As the tail of the dog in trucking, used truck sales fall when new truck sales slow. So when major manufacturers shuttered assembly plants for six weeks in March and April, used equipment all but froze. Already low prices dropped even further. Loose capacity heading into the pandemic tightened. 

However, in recent months as freight...

https://www.freightwaves.com/dealership-network-rush-enterprises-sees-profit-margins-double-from-q2-to-q3

Consensus for double-digit truckload rate increases forming

Unidentified truck on highway

The expectation for truckload (TL) contractual rates to increase by double digits in 2021 is growing. In a Wednesday note to clients, UBS (NYSE: UBS) transportation equities analyst Tom Wadewitz outlined the fundamentals supporting this projection.

“The current extreme tightness in the TL spot market plus a constructive outlook on freight point to double-digit rate increases in 2021,” he concluded.

Wadewitz said recent spot market metrics “show a market that remains on a trend of further...

https://www.freightwaves.com/news/consensus-for-double-digit-truckload-rate-increases-forming

On the wires: Boiling point

“As suggested by numerous macro indicators, the third quarter saw sequential improvements in global trade after 2Q20 lows. However, volume improvements, especially in air freight, were less pronounced than the backdrop implies.

“Moreover, average airfreight prices, although sequentially lower, remained high compared to 3Q19. Such a high-priced environment served freight forwarders’ 2Q20 margins surprisingly well. However, with customers understanding market dynamics better, we see some risks for...

https://theloadstar.com/on-the-wires-boiling-point/

The Daily Dash: Truckload sector shines bright; Amazon drones ready to fly

The Daily Dash is a quick look at what is happening in the freight ecosystem. In today’s edition, at least one analyst believes the truckload sector is ready to run in the second half of 2020. Plus, Amazon gets approval for drone delivery, Dallas is the new center of the autonomous world, and what to know to get through a visit from an insurance underwriter.

Truckload earnings shine bright

At least one analyst believes in the truckload market. An analyst with UBS (NYSE: UBS) has raised his...

https://www.freightwaves.com/news/the-daily-dash-truckload-sector-shines-bright-amazon-drones-ready-to-fly

Analyst ups estimates for truckload carriers in 2H 2020

Trucks on highway

Citing strong spot market fundamentals and low retail inventories, UBS (NYSE: UBS) freight transportation analyst Tom Wadewitz raised his forecasts for truckload (TL) carriers for the back half of the year.

“Truckload spot market data have shown a better-than-normal seasonal pattern with continuing strength in spot loads in July and August,” stated Wadewitz in a Friday note to clients. The analyst pointed to a low retail inventory-to-sales ratio as well as recent reports of declining inventories...

https://s29755.pcdn.co/news/analyst-ups-estimates-for-truckload-carriers-in-2h-2020

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