Bank of America Securities analyst Ken Hoexter has reiterated their neutral stance on SNDR stock, giving a Hold rating yesterday.
Geoff Meacham has given his Hold rating due to a combination of factors affecting Schneider National’s financial performance and future outlook. Schneider National’s recent quarterly earnings showed a significant decline, primarily due to exceptional accident claims, which negatively impacted their numbers. Despite these setbacks, the inclusion of electric vehicle tax credits and the sale of their Asia business provided some financial cushioning. The company’s projections for 2024 indicate a potential recovery in the second half of the year, expecting improvements in volume and pricing across its key segments. However, these projections still fall short of previous expectations, leading to a cautious stance on the stock at this time.
In addition, the Intermodal segment notably underperformed, contributing to the company’s revenue miss, compounded by additional costs from stacked containers due to weakened demand. Despite these challenges, Schneider National’s financial metrics and the anticipated trough in the freight downcycle justify a Neutral rating. The analyst adjusted the price objective slightly downward, reflecting a revised earnings estimate and a valuation that accounts for the current stage of the freight cycle and the company’s internal metrics, which suggest a prolonged period below the neutral freight index.
In another report released yesterday, Goldman Sachs also maintained a Hold rating on the stock with a $25.00 price target.
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Schneider National (SNDR) Company Description:
Schneider National Inc. provides transportation and logistics services. The firm’s transportation solutions include van truckload, dedicated, regional, bulk, intermodal, brokerage, supply chain management, port logistics services and engineering and freight payment services. It operates through the following segments: Truckload, Intermodal and Logistics. The Truckload segment consists of freight transported and delivered with standard and specialty equipment by employed drivers in company trucks and by owner-operators. The Intermodal segment consists of door-to-door container on flat car service by a combination of rail and over-the-road transportation, in association with rail carrier partners. The Logistics segment consists of non-asset freight brokerage services, supply chain services and import/export services. The company was founded by A. J. Schneider in 1935 and is headquartered in Green Bay, WI.
Read More on SNDR:
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- SNDR Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- Schneider National price target lowered to $26 from $27 at Susquehanna
- Schneider National price target raised to $27 from $23 at Susquehanna
