Raymond James analyst Patrick Tyler Brown tells investors in a research note that truck pricing and volume pressures are expected to weight on near-term results in the Transportation Services space, saying that following another quarter of challenging freight conditions and contractual truckload renewals likely firmly in negative territory y/y, "we are generally not expecting much to write home about this quarter." He thinks attention will center around any update on truckload capacity, especially in the wake of what he sees as early signs of capacity rationalization between net truck orders well below replacement, plateauing truck transportation employment and a host of potential regulatory impacts. The analyst raised his price target on Saia (SAIA) to $105 from $85 and on Kansas City Southern (KSU) to $151 from $141 and lowered his price target on Union Pacific (UNP) to $188 from $197.

Deutsche Bank placed a "Catalyst Call: Buy" on shares of Union Pacific (UNP) as a short-term investment idea. With all the attention Norfolk Southern (NSC) is getting in recent months, it is easy to overlook developments at other railroads, the analyst tells investors in a research note. The firm says Union Pacific is now the worst performing pail stock year-to-date. However, operating metrics "clearly show that UNP's renewed efforts on operations are gaining traction," contends Deutsche Bank. It keeps a Buy rating on the shares with a $266 price target.