Model Update: KNX Takes Out More Expensive Debt With Converts

Research evidence excerpt

Model Update: KNX Takes Out More Expensive Debt With Converts

TD Cowen Knight-Swift Transportation

Global Research May 15, 2026

AT A GLANCE

Our Investment Thesis Forthcoming Catalysts

Knight-Swift appears well positioned to benefit from truckload industry capacity tightness ■ Regulation reducing capacity

and external growth opportunities in the long term. The growth of the company's high-return ■ OTR rate rebound

asset-light businesses should be another driver of earnings growth. We believe progress on ■ LTL growth expanding KNX's multiple

diversification positions KNX well for resilience.

Base Case Assumptions Upside Scenario Downside Scenario

The truckload market slowly rationalizes Capacity materially tightens allowing KNX to The economy falters, and pricing recovery in

capacity and the economy continues to grow gain pricing momentum. bid season doesn't materialize as expected.

at a modest pace.

Price Performance Company Description

Knight Transportation operates as a short- to medium-haul truckload carrier of general

$75

commodities primarily in the United States. The company operates in five segments: Dry

70 Van Truckload, Temperature-Controlled Truckload, Port Services, Brokerage, and Intermodal

Services. It provides asset-based dry van truckload, temperature-controlled truckload, and 65

dedicated truckload services; and drayage services between ocean ports or rail ramps, and

60 shipping docks. The company also offers non-asset-based services, including rail intermodal

55 and truckload brokerage services. Knight Transportation, Inc. was founded in 1989 and is

headquartered in Phoenix, Arizona.

40 Analyst Top Picks

35 Ticker Price (05/14/2026) Price Target Rating

Aug-25 Nov-25 Feb-26 May-26

Knight-Swift Transportation KNX $68.03 $81.00 Buy

Source: Bloomberg