Raymond James Upgrades Schneider National (SNDR) to Outperform

Raymond James analyst David Hicks upgraded Schneider National (NYSE: SNDR) from Market Perform to Outperform with a price target of $28.00.

The analyst comments: "We are upgrading shares of SNDR to Outperform from Market Perform given a setup that increasingly favors exposure to Dedicated and Intermodal growth. Schneider has deliberately migrated to a more stable earnings base, with Dedicated now ~70% of the TL fleet (vs. ~38% pre-pandemic) and a scaled Intermodal franchise (third largest in NA). That shift has already reduced earnings cyclicality (peak-to-trough EPS down ~76% vs. TL peers ~85% on average), and sets SNDR up to garner cycle benefits (on a lag) as supply exits compound and pricing normalizes. We see the combination of accelerating Dedicated wins, a friendlier competitive backdrop as private fleet growth eases, and an under-utilized Intermodal box fleet amidst improving rail service, as catalysts for multi-year growth with limited incremental (success-based) capex. With shares
screening inexpensive vs. mid-cycle earnings power (11x) and tangible book value (1.6x) providing a floor, we see an attractive risk/reward setup."

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 $23.44 yesterday.

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