Multi-modal truckload stocks, including J.B. Hunt Transport Services (JBHT) and Knight-Swift Transportation (KNX), face several supply-side catalysts that are tightening the market in a muted demand environment, BofA Securities analysts said in a Friday note.

The US government's crackdown on English Language Proficiency, nondomiciled Commercial Drivers Licenses, and noncompliant electronic logging devices is tightening truckload capacity, the analysts said.

There has been an above-seasonal increase in spot rates into December following several government actions, including the Department of Transportation's removal of almost 3,000 Commercial Drivers License training providers and the Department of Homeland Security carrying out workplace audits across Northern and Central California trucking companies, the analysts added.

BofA increased the 2026 earnings estimates on J.B. Hunt, Knight-Swift, Schneider National (SNDR), and Werner Enterprises (WERN) by 2% on average.

On J.B. Hunt, BofA increased the price target to $208 from $175 and retained a buy rating. On Knight-Swift, it raised the price target to $57 from $50 and reiterated a buy rating. On Schneider National, the price target was increased to $26 from $22, and a neutral rating was retained. On Werner Enterprises, the price target was raised to $25 from $22, and an underperform rating was reiterated.

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