Knight-Swift Transportation (KNX) is expected to benefit from a stronger-than-anticipated truckload pricing environment, UBS Securities said in a report Thursday.

"The step up in KNX's expectation for contract rates from a

prior view of low single to mid single digits to a new range of high single to low double digits was a larger move up than we expected," the report said.

The note said KNX is on track to realize some 10% contract rate increases in the bid season, translating to an about 6% realized pricing for full year 2026, based on the 20% rise in Q1 spot rates and broker commentary of contract rates in March.

"We believe it is early in the truckload pricing cycle and there is attractive runway for KNX stock," the report said.

UBS raised its price target to $79 from $66 and kept its buy call.

Price: 66.97, Change: +2.99, Percent Change: +4.67