Benzinga | Jan 6, 2022 02:47PM EST

Wolfe Research Downgrades Trucking Sector To Underweight; Adjusts Ratings For Related Stocks

* Wolfe Research analyst Scott Group downgraded the trucking sector to Underweight from Market Weight and adjusted the ratings for several related stocks.

* Group says while supply chains remain under "significant stress with few signs of improvement," inventory levels are finally starting to improve.

* The analyst expects to see a gradual supply chain improvement in 2022, leading to slower freight demand and pricing gains in the second half of the year.

* He believes 2022 will represent "peak earnings for a bunch of transports."

* The analyst downgraded Covenant Logistics Group Inc (NASDAQ:CVLG) to Underperform from Peer Perform with a price target of $23 (a downside of 1.3%).

* The analyst downgraded TFI International Inc (NYSE:TFII) to Peer Perform from Outperform.

* The analyst downgraded Forward Air Corp (NASDAQ:FWRD) to Peer Perform from Outperform.

* The analyst downgraded Westinghouse Air Brake Technologies Corp (NYSE:WAB) to Underperform from Peer Perform with a price target of $92 (a downside of 5%).

* The analyst downgraded Landstar System, Inc. (NASDAQ:LSTR) to Underperform from Peer Perform and announced a price target of $169 (a downside of 1.5%).

* The analyst downgraded U.S. Xpress Enterprises Inc (NYSE:USX) to Underperform from Peer Perform to Underperform and announced a price target of $5 (a downside of 6.5%).

* The analyst upgraded C.H. Robinson Worldwide Inc (NASDAQ:CHRW) to Outperform from Peer Perform and announced a price target of $124 (an upside of 12%).

* Price Action: CVLG shares are trading lower by 6.43% at $23.43, FWRD by 1.58% at $116.76, LSTR by 4.35% at $171.53, TFII down by 2.3% at $102.40, USX lower by 5.48% at $5.35, CHRW higher by 0.65% at $110.37 and WAB higher by 0.23% at $96.77 on the last check Thursday.