Benchmark raises Saia stock price target to $360 on network optimization

Published 28/07/2025, 14:36
Benchmark raises Saia stock price target to $360 on network optimization

Investing.com - Benchmark raised its price target on Saia Inc. (NASDAQ:SAIA) to $360.00 from $325.00 on Monday, while maintaining a Buy rating on the less-than-truckload carrier. The stock, currently trading at $331.94 with a market cap of $8.82 billion, has shown remarkable momentum with a 15.92% gain in the past week, though InvestingPro data indicates it may be trading in overbought territory.

The price target increase follows Saia’s second-quarter operating ratio improvement of 330 basis points sequentially, which exceeded the historical average of 250 to 300 basis points and surpassed Benchmark’s expectations. With a P/E ratio of 30.8x and revenue growth of 4.23%, InvestingPro analysis reveals 15+ additional key insights and a comprehensive Fair Value assessment available to subscribers.

Saia’s revenue slightly exceeded both Benchmark and Wall Street estimates, driven by better revenue per hundredweight, while tonnage and shipment growth aligned with the firm’s projections that had already factored in lower seasonality.

Terminals opened less than three years ago showed a 4% sequential shipment improvement in the second quarter and operated at a mid-90s operating ratio, compared to breakeven in the first quarter.

Benchmark cited improved network optimization and new terminal margin improvement as key factors behind the price target increase, noting that Saia could leverage its fixed cost infrastructure and increased density from its expanded network to eventually generate an operating ratio in the low 80s as demand improves.

In other recent news, Saia Inc. reported impressive financial results for the second quarter of 2025. The company exceeded analysts’ expectations with an earnings per share (EPS) of $2.67, surpassing the forecasted $2.41, which represents a 10.79% surprise. Revenue also outperformed projections, reaching $817.12 million compared to the anticipated $810.94 million. These results highlight Saia Inc.’s strong operational performance and have drawn positive attention from investors. The company’s robust earnings and revenue figures are significant developments for stakeholders. Furthermore, the recent financial achievements have been noted by analysts, although specific upgrades or downgrades have not been mentioned. Saia Inc.’s ability to surpass market expectations underscores its current financial health. These developments are crucial for investors monitoring the company’s performance.

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