Knight-Swift Transportation (KNX) remains well-positioned to achieve its Q3 targets as management said headwinds were incorporated into its outlook, BofA Securities said in a note Tuesday.

The investment firm said J.B. Hunt Transport Services (JBHT), which recently said it anticipates a Q3 cut due to driver and fuel pressures, is more exposed to tightening driver capacity than Knight-Swift, which is taking targeted actions on driver pay to improve its seated truck count.

BofA lowered its Q3 earnings per share estimate to $0.76 from $0.77, which is still near the high end of the company's $0.71 to $0.77 guidance and in line with Street expectations.

The firm said it expects a modest sequential improvement in Intermodal profitability, supported by higher volumes and improved box turns.

As spot rates decrease and management prioritizes margin over volume growth, the firm said it expects Logistics operating ratio to improve 80 basis points sequentially on flat revenue.

BofA Securities lowered its price target for Knight-Swift Transportation stock to $92 from $98, while keeping a buy rating.

Shares of Knight-Swift Transportation were up 0.3% in Wednesday trading.

Price: 67.30, Change: +0.21, Percent Change: +0.31