Stifel, Citi Bump Up Knight-Swift Price Target Post Midwest Motor Express Deal

Stifel analyst Joseph DeNardi raised the price target on Knight-Swift Transportation Holdings Inc KNX to $72 from $70 and maintained a Buy rating on the shares after the company announced the acquisition of Midwest Motor Express.
DeNardi likes the deal and sees it as consistent with management's messaging that they want to build out a nationwide LTL network and continue to utilize their scale advantage across freight verticals.
Citi analyst Christian Wetherbee raised the price target to $64 (an upside of 4%) from $61 and maintained a Neutral rating on the shares.
Wetherbee increased estimates to reflect the acquisition of Midwest Motor Express.
Knight-Swift Transportation acquired RAC MME Holdings, LLC, and its subsidiaries, which operate under the brand names of Midwest Motor Express, Inc. and Midnite Express Inc, from Red Arts Capital, Prudential Capital Partners, and Brightwood Capital Advisors for $150 million cash.
The transaction is expected to be $0.06 accretive to Knight-Swift's Adjusted EPS in 2022.
MME is expected to generate ~$137 million in revenue, $27 million in Adjusted EBITDA, and $16 million in operating income for FY21.
Price Action: KNX shares are trading higher by 2.83% at $61.32 on the last check Tuesday.