Citi Lowers PT Slightly On KNX, To $19

Citi is lowering its price target from $20 to $19 on Knight Transportation KNX in spite of the company's above expectations results in 2Q11. According to Citi, “Knight's 2Q11 results came in above our and consensus' expectations due to better than expected operations and share repurchases. Operating ratio deteriorated YOY, but was better than our target despite strong growth in the company's lower margin brokerage segment. Management's commentary was very constructive regarding 2H11, as it noted a solid start to 3Q volumes in July and, while pricing is likely to decelerate to +2%-3% in 3Q on tougher comps, it remains confident in its +3%-4% full year target… We believe the company is making progress from its poor showing in 1Q11, but weaker 2H guidance (despite positive commentary) is likely to pressure the stock in the near-term.” Citi maintains its Buy rating on the stock. KNX closed yesterday at $16.