Stifel Upgrades Schneider National (SNDR) to Buy

Stifel analyst J. Bruce Chan upgraded Schneider National (NYSE: SNDR) from Hold to Buy with a price target of $25.00 (from $26.00).

The analyst comments "Despite being one of the nation’s largest and well-run trucking fleets, shares of Schneider have not fared well this year throughout the prolonged freight bottom driven by a slower-than-expected rate of capacity exits and depressed demand outlook lacking catalysts. Valuation has continued to recede (especially on a relative basis), which has made the risk-reward equation more tempting to us, but demand uncertainty and the lack of clear positive catalysts—also up to this point—has kept us on the sidelines here. However, with indications of tightening regulatory supply pressure, we feel incrementally better about a cycle upturn, and we are upgrading shares of Schneider National to Buy. We feel that upside to valuation at these levels comfortably exceeds downside to the stock, provided that investors share our base case sentiment that demand remains roughly stable at soft levels."

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 $21.08 yesterday.

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