Morgan Stanley ups freight cycle forecast but downgrades ODFL, JBHT and LSTR
MS•Morgan Stanley shares jumped 3.27% Tuesday as banking stocks rallied ahead of Q2 reports following upward earnings revisions. Its equity analysts raised the 2026 freight-cycle outlook yet downgraded ODFL, JBHT and LSTR to underweight, citing stretched valuations and potential slowdown in hyperscaler capital spending.
1. Bank stocks rally ahead of Q2 earnings
Morgan Stanley shares gained 3.27% Tuesday as the broader banking sector advanced on upward revisions to second-quarter earnings estimates and signals of higher dividends from peers.
2. Caution on freight sector despite stronger cycle outlook
MS equity analysts raised their 2026 freight-cycle forecast but moved freight names including ODFL, JBHT and LSTR to underweight, citing high valuations and concerns over a slowdown in hyperscaler capital spending that could temper shipping demand.
