KeyBanc analyst Todd Fowler last night upgraded both Heartland Express (HTLD) and Marten Transport (MRTN) while reiterating Overweight ratings on Knight-Swift Transportation (KNX) and Werner (WERN). The analyst has increased conviction in stabilizing truckload dynamics on more seasonal trends and reduced incremental supply. His channel checks indicate lower demand and available capacity Q3-to-date, which he notes is largely in line with expectations. However, pricing outlooks have stabilized, Fowler tells investors in a research note. He has a $25 price target on Marten Transport.

Reports Q1 revenue $249.67M, consensus $262.77M. Executive chairman Randolph Marten stated, "The freight market recession's oversupply and weak demand, inflationary operating costs and cumulative impact of freight rate reductions and related freight network disruptions continue to significantly pressure our earnings. The value of our unique multifaceted business model is highlighted by the operating results for our dedicated and brokerage operations in the first quarter. Our operating results improved throughout the quarter after earning 2 cents per share in January, which was also impacted by widespread harsh winter weather."