12:43 PM EDT, 10/16/2025 (MT Newswires) -- Knight-Swift Transportation ( KNX ) is poised to benefit from tightening truckload capacity as recent US enforcement actions and upcoming tariffs constrain supply, BofA Securities said in a note Thursday.

The brokerage said enforcement of English Language Proficiency requirements and the halt of non-domiciled Commercial Driver's License issuances are beginning to tighten truckload capacity, echoing similar signals from industry checks and peer comments.

BofA also noted that President Donald Trump's 25% tariffs on imported heavy-duty trucks, set to take effect Nov. 1, could drive up Class 8 vehicle prices and pressure new orders, further constraining supply.

While the firm said the 3.5-year freight downcycle has seen "multiple head fakes," it called Knight-Swift a "well-run truckload operator" that should benefit from "constructive" truckload dynamics as supply tightens.

BofA raised its 2026 earnings forecast for Knight-Swift to $2.05 per share from $2.00.

The firm upgraded Knight-Swift Transportation's ( KNX ) rating to buy from neutral and raised its price objective to $50 from $41.

The company's shares were up more than 6% in recent trading.

Price: 46.89, Change: +2.69, Percent Change: +6.09