DA Davidson reiterated its buy rating on Wabash National Corporation (NYSE: WNC) on Monday, citing strong trailer industry data despite the company’s ongoing losses. The analyst firm maintained a price target of $20.00, up from the stock’s recent trading price of approximately $12.05.
Wabash National reported second-quarter revenue of $417.24 million, exceeding Wall Street’s forecast of $389.55 million by 7.11%. However, the company posted an adjusted loss per share of $0.53, compared with the expected loss of $0.50. Shares of WNC have gained 42% over the past year, reflecting improving market conditions.
Trailer industry data from ACT Research showed a 94% year-over-year increase in U.S. trailer orders for July, marking the third consecutive month of annual growth in backlog after 36 months of declines. U.S. trailer shipments rose 5% year-over-year in the same period. DA Davidson attributed the surge to the early opening of order books for 2027 during a typically low seasonal period, projecting a return to average production levels next year.
The company also announced the Sixth Amendment to its Amended and Restated Second Credit Agreement, securing a $300 million revolving credit facility with a potential commitment increase of up to $175 million subject to creditor approval. Analysts noted that Wabash National currently lacks profitability and is not expected to achieve it this year, despite the improving order trends.
InvestingPro data indicated the company remains unprofitable, with no near-term expectation of profitability. DA Davidson highlighted the company’s capacity to produce up to 10,000 additional trailers as market conditions improve, underscoring its operational flexibility amid sector recovery.
