UPDATE: Bank of America Merrill Lynch Downgrades Knight Transportation to Neutral

Bank of America Merrill Lynch is out with its report today on Knight Transportation KNX, downgrading KNX from Buy to Neutral. In a note to clients, Bank of America Merrill Lynch writes, "We are lowering our opinion on Knight Transportation's shares to Neutral from Buy and reduce our price objective to $19 from $20. Our price objective is based on 22x multiple (from 23x) on our $0.85 2011 EPS forecast (and 17.5x our 2012 EPS estimate), in line with its historical 18x-28x forward P/.E range. We believe our mid-point target multiple is warranted given Knight's prospects for slower growth, signaled by its new share buyback program." Shares of KNX closed Tuesday at $16.92, down 1.46% from Monday's close.