Stephens Downgrades Schneider National (SNDR) to Equal Weight, 'we don't find the current risk/reward to be attractive'

Stephens analyst Jack Atkins downgraded Schneider National (NYSE: SNDR) from Overweight to Equal Weight with a price target of $28.00.

The analyst comments "While we concede that the current freight recession has been deeper and last longer than we anticipated, we've nevertheless been disappointed by the cyclically and lack of durability of SNDR's earnings power. Despite enjoying a diversified modal mix with scaled operations in Truckload, Intermodal and Logistics, and outsized exposure within its Trucking fleet to the more stable dedicated market, we estimate that SNDR's trough EPS on an LTM basis this cycle could be down 41% from the last cycle trough. That's worse than KNX's trough-to-trough performance despite dilution from USX and significant third party insurance accruals. While we expect a strong recovery in SNDR's earnings power once fundamentals improve, the 2024 guide appears aggressive, and we don't find the current risk/reward to be attractive. As such, we are downgrading SNDR to Equal-Weight from Overweight. Our price target remains $28 (14.4x our 2025 forecast), which represents 17% upside from Friday's close."

For an analyst ratings summary and ratings history on Schneider National click here. For more ratings news on Schneider National click here.

Shares of Schneider National closed at $24.19 yesterday.

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