DA Davidson raised its target price for Wabash National to $11.00 from $9.00 on Tuesday while retaining a Neutral recommendation on the stock. The firm's revised target still sits beneath the InvestingPro Fair Value assessment, a signal within that data that the shares may remain undervalued even after an impressive 30.01% year-to-date increase.
The move follows the release of Wabash National's fourth-quarter 2025 financials. DA Davidson's note emphasized that freight-market conditions continue to be challenging. InvestingPro metrics indicate Wabash has been profitable over the trailing twelve months, but the company's gross profit margin is weak at 4.53%.
Key financial details from the quarter showed a larger-than-expected loss per share. Wabash reported earnings per share of -$0.93, missing the anticipated -$0.76. Revenue for the quarter came in slightly ahead of forecasts, totaling $321.45 million versus an expected $318.33 million. These mixed results - a deeper loss alongside modestly stronger revenue - have drawn attention from market participants and analysts.
DA Davidson also highlighted several operational and balance-sheet items that factor into its stance. The company has ceased providing guidance beyond the current quarter. Some production capacity has been taken offline, though the firm has indicated its dry-van manufacturing lines could be scaled back up if fleet customers return to buying activity. At the same time, Wabash operates with $442.85 million of debt on its balance sheet, a leverage level the research note identified as a constraint on flexibility during this uncertain demand environment.
On a legal front, DA Davidson pointed to a recent development that could favor Wabash. The company "notched a victory in its anti-dumping case" on Friday, an outcome the research firm suggested might lead to improved market share or pricing dynamics for the company going forward. Despite that legal win, DA Davidson concluded it is still premature to recommend the shares, expressing that it remains "too early to tell" whether fleet customers will return to the market in meaningful fashion.
Analyst targets cited in the research note range from $11 to $18, while the consensus recommendation remains Neutral. For readers seeking more granular valuation and financial-health analysis, InvestingPro provides an expanded Pro Research Report with additional metrics and commentary.
The current valuation landscape for Wabash is notable. With a trailing price-to-earnings ratio of just 2.2, the stock is trading at a low earnings multiple relative to typical market standards; the InvestingPro Fair Value signal referenced by DA Davidson suggests that, on certain measures, the shares may still be undervalued despite recent gains.
Market participants will likely focus on a few near-term indicators: whether Wabash restores guidance beyond the current quarter, if fleet customers resume purchasing at rates sufficient to reactivate sidelined capacity, and how the company's leverage influences operational flexibility if weak freight-market conditions persist. The anti-dumping decision represents a discrete positive development, but DA Davidson's neutral stance reflects continued uncertainty about demand recovery.
Summary
DA Davidson increased its price target for Wabash National to $11 from $9 and kept a Neutral rating after the company's Q4 2025 report. The stock has gained 30.01% year-to-date and trades at a trailing P/E of 2.2. Wabash reported EPS of -$0.93 versus an expected -$0.76, and revenue of $321.45 million versus an expected $318.33 million. The firm is not providing guidance beyond the current quarter, has sidelined some production capacity, carries $442.85 million in debt, and recently secured a favorable decision in an anti-dumping case. InvestingPro data shows profitability over the last twelve months but weak gross margins of 4.53%.
Key points
- DA Davidson raised its Wabash National price target to $11.00 from $9.00 and kept a Neutral rating.
- Q4 2025 results included an EPS of -$0.93 (expected -$0.76) and revenue of $321.45 million (expected $318.33 million).
- Despite a 30.01% year-to-date share increase and a trailing P/E of 2.2, the company faces weak gross margins (4.53%) and ongoing freight-market challenges.
Risks and uncertainties
- Demand risk - It remains unclear whether fleet customers will return to purchasing at levels that would allow Wabash to reactivate sidelined production capacity. This affects transportation and industrial manufacturing sectors.
- Leverage constraint - The company's $442.85 million debt load could limit operational flexibility amid continued market weakness, with implications for credit-sensitive capital expenditures and supplier relationships.
- Market conditions - Persistently challenging freight-market conditions cited by DA Davidson could continue to pressure margins and near-term profitability.
Tags: WNC, transportation, earnings, analyst, manufacturing