Deutsche Bank says it is time to buy transportation stocks again
AerialPerspective Works

Deutsche Bank is positive on the outlook for transportation equities in 2023.
Analyst Amit Mehotra and team said the trough in earnings growth is expected to be in Q2 of 2023 to be followed by a prolonged period of improving year-on-year growth. Mehotra noted that is an important consideration in cyclical investing with negative revisions closer to the bottom typically translating to higher multiples and higher equity values.
Standing out in the Tuesday ratings sweep of the sector by Deutsche Bank, UPS (NYSE:UPS) landed an upgrade to a Buy rating from Hold and higher price target of $220. The firm thinks UPS shares are overindexing transitory headwinds rather than the structural opportunity for consistent profitable growth.
âIn the near-term, we think market participants are overly focused on volume growth and not on mix and productivity initiatives, which we think can drive positive revenue growth and solid contribution margins despite modestly lower domestic volumes by market participants."
Deutsche Bank also upgraded Canadian Pacific (CP) to a Buy rating from Hold and assigned a higher price target of $98.
The firm reiterated bullish views and buy ratings on CSX Corporation (CSX), Canadian National Railway (CNI), J.B. Hunt Transport (JBHT), Saia (SAIA), Union Pacific (UNP), Werner Enterprises (WERN), GXO Logistics (GXO), and FedEx Corporation (FDX)
See the highest rated stocks in the Industrials sector by Seeking Alpha Quant Ratings.