Wabash National (NYSE:WNC) was cut to Market Perform from Strong Buy at Raymond James Wednesday, with analysts removing the price target.
They told investors that the company's risk/reward has become more balanced on the back of "ongoing macro/truck market softness."
"That in our view could negatively weigh on trailer demand into 2024 and drive Street estimates lower," the analysts wrote.
However, the analysts stated that through cycles, they still see WNC as "the most direct beneficiary of heightened new dry van trailer demand associated with trailer pool build-outs due to the broad-based adoption of 'power-only' networks."
Even so, on the back of the stock's significant outperformance in the last 24 months and with Raymond James believing 2024 Street estimates are likely to move lower on a profit per trailer normalization/volume headwinds, they believe it is "prudent to step to the sidelines."