DA Davidson has reiterated its Buy rating on Wabash National shares, citing improving industry fundamentals despite near-term production constraints. The firm maintained a $20 price target on the NYSE-listed trailer manufacturer, implying a 67% upside from Tuesday’s close of $11.99.
U.S. trailer orders surged 94% year-over-year in July, according to ACT Research, marking the third consecutive month of year-over-year backlog growth after 36 months of declines. Shipments rose 5% over the same period, though production rates are expected to remain muted in the near term. DA Davidson attributed the order strength to the early opening of 2027 order books, a period typically characterized by lower activity.
Wabash National’s second-quarter revenue reached $417.24 million, exceeding Wall Street expectations by 7.11% and surpassing the $389.55 million consensus. The company reported a wider-than-expected adjusted loss of $0.53 per share, compared with the anticipated $0.50 loss. Analysts do not expect profitability this year, though InvestingPro’s Fair Value analysis suggests the stock remains undervalued.
The company also secured a Sixth Amendment to its credit agreement, expanding its revolving credit facility to $300 million with the potential to increase commitments by up to $175 million subject to lender approval. Wabash National has capacity to produce up to 10,000 additional trailers as market conditions improve, though production is projected to normalize by 2027.
