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Investing.com - Benchmark has reiterated its Buy rating and $31.00 price target on Schneider National (NYSE:SNDR), citing more stable-than-expected freight volumes in the second quarter. According to InvestingPro data, the stock currently trades at $25.57, suggesting potential upside to the target price. The company maintains strong fundamentals with a current ratio of 1.9x, indicating healthy liquidity.
Despite concerns about potential disruptions, Benchmark noted that while May was soft, the anticipated large drop in June has been less severe than feared. The firm’s research suggests retailers have effectively managed inventory, which muted the potential impact from lower imports in May. With an EBITDA of $572.6 million in the last twelve months and moderate debt levels, Schneider appears well-positioned to navigate market fluctuations.
Intermodal volume has remained steadier than anticipated, with domestic intermodal volumes carried by companies like Schneider National showing stability despite weakness in international intermodal volumes resulting from lower imports.
The research firm highlighted that truckload capacity has become more balanced with annualized Class 8 orders below replacement levels, while the reinstatement of English language proficiency standards could further tighten capacity. However, Benchmark acknowledged that demand remains below seasonal norms and transport pricing, while positive, has been tepid.
Benchmark maintained its Buy recommendation based on Schneider’s diverse business mix and cost initiatives, noting the company’s new partnership with Union Pacific (NYSE:UNP) and CPKC could eventually translate to better intermodal pricing, while the Truckload segment offers significant leverage potential once pricing improves. InvestingPro analysis shows the company has raised its dividend for 3 consecutive years and maintains a Fair financial health score. Investors can access the comprehensive Pro Research Report, along with 6 additional ProTips and detailed financial metrics, through an InvestingPro subscription.
In other recent news, Schneider National reported its first-quarter 2025 earnings, achieving an earnings per share (EPS) of $0.16, which aligned with analysts’ expectations. However, the company faced a revenue shortfall, bringing in $1.26 billion against a projected $1.42 billion. Despite this, analysts remain optimistic about Schneider’s strategic direction. Goldman Sachs upgraded Schneider’s stock rating from Neutral to Buy, increasing the price target to $32, citing a more conservative valuation approach. UBS also maintained a Buy rating, with a $25 price target, after discussions with company executives highlighted stable demand and strategic shifts towards dedicated contract truckload business. Citi raised its price target for Schneider to $24 while maintaining a Neutral rating, noting Schneider’s revised EPS guidance for 2025, which anticipates growth driven by pricing increases and efficiency improvements. These recent developments reflect a cautious yet positive outlook from analysts on Schneider National’s future performance.
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