The Weekly Shipment: Remain ++ KNX, JBHT. Increasing our ++ conviction on CHRW

Research evidence excerpt

The Weekly Shipment: Remain ++ KNX, JBHT. Increasing our ++ conviction on CHRW

Deutsche Bank

Research

North America Industry Date

Transportation The Weekly Shipment 15 May 2026

Remain ++ KNX, JBHT. Increasing our ++

Richa Harnain, CFA conviction on CHRW

Research Analyst

+1-212-250-6285

First and foremost, we remain highly constructive on asset-based carriers like

KNX and JBHT, particularly given the positive structural industry changes Megan Makini

stemming from this week's Supreme Court decision. Research Associate

+1-212-2501458 We discuss the various positive implications for stocks in our notes published

earlier this week (read for more detail: here and here). And while shares of both

our preferred names KNX (Buy; $68) and JBHT (Buy; $261) are up on average

10%+ on the back of these developments, we still think they have significant room

to run. Underlying our conviction is our view that the market is currently pricing

in only the cyclical tailwinds for the likes of JBHT and KNX —higher rates due to

increased insurance/vetting costs and immediate share gains—and

underappreciating the long-term, structurally higher barriers to entry that the

ruling creates for the industry.

However, we close out the week focusing our attention on another significant

beneficiary of structural industry improvement: CHRW

The stock is up only 1% since yesterday’s news. While we acknowledge there are

likely some negative near-term ramifications to its business from the Supreme

Court decision in the form of higher incremental costs, we consider:

• Such costs should be more modest than for the common truck broker, as

we believe CHRW (Buy, $160) already has excess insurance coverage;

• The costs will be absorbed by a business generating industry-leading