UPDATE: Bank of America Lowering Price Target On Knight Transportation

Bank of America Merrill Lynch is out with a research report on Knight Transportation Inc KNX and is lowering its price target to $17.50, and it has a Neutral rating on shares. In a note to clients, Bank of America Merrill Lynch writes, "Knight posted results that were slightly above our and Street targets, but concurrently issued an outlook that placed Consensus above the top end of targets (and well below our estimates). It noted its targets may be conservative, but as 2H10 did not pan as expected, along with the troubles in 1H11, created a residual memory. This was the first time we can recall Knight issuing guidance, and was likely done to reign in outlying estimates (top of Street for 4Q11 is $0.35, nearly double its target). Kevin Knight noted the company anticipated a normal peak, with May and June building on April, with strength continuing into July." Shares of KNX lost 33 cents yesterday to close at $16.00.