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On Monday, Schneider National (NYSE:SNDR) received an upgraded stock rating from Goldman Sachs, moving from Neutral to Buy. The firm also raised the price target for Schneider National shares to $32.00, up from the previous $24.00. The new target is based on a price-to-earnings (P/E) multiple of 16.5 times, which is a decrease from the prior multiple of approximately 18.0 times. Goldman Sachs applied this multiple to their mid-cycle earnings per share (EPS) estimate of $1.93. Previously, the firm had used a near-term P/E proxy against an estimated Q5-Q5 EPS of $1.32. According to InvestingPro data, SNDR currently trades at a P/E of 32.02x, with analyst price targets ranging from $22 to $38, suggesting mixed views on the stock’s valuation.
The Goldman Sachs analyst, Jordan Alliger, provided insight into the rationale behind the upgrade and the new price target. Alliger noted that the revised P/E multiple reflects a more conservative valuation approach. Despite the reduction in the P/E multiple, the increased earnings estimate contributed to the higher price target for Schneider National. InvestingPro analysis shows that 13 analysts have recently revised their earnings expectations downward for the upcoming period, while the company maintains strong liquidity with a current ratio of 1.9.
Alliger also outlined potential downside risks for Schneider National, which investors should consider. These risks include the possibility of slower-than-anticipated volume growth and challenges related to truck capacity, whether it be an influx or a lack thereof exiting the market. Inflationary cost pressures were also highlighted as a concern, along with insurance payout risks. Additionally, underperformance in Schneider’s other business segments could pose a threat, especially in the face of recessionary pressures or tariff-related issues. These concerns appear reflected in the stock’s performance, with InvestingPro data showing a significant 29.52% decline over the past six months, despite the company operating with moderate debt levels and maintaining profitable operations.
Schneider National’s stock price may fluctuate based on market conditions and the company’s performance relative to these identified risks. The upgraded rating and new price target reflect Goldman Sachs’ current outlook on the stock, taking into account the factors mentioned by Alliger. As the market processes this information, Schneider National’s stock performance will be observed by investors and analysts alike. For comprehensive analysis including Fair Value estimates and additional ProTips, investors can access the detailed Pro Research Report available exclusively on InvestingPro.
In other recent news, Schneider National reported its first-quarter 2025 earnings, meeting analysts’ expectations with an earnings per share (EPS) of $0.16, although revenue fell short at $1.26 billion compared to the projected $1.42 billion. The company has adjusted its full-year 2025 EPS guidance to a range of $0.75 to $1.00, down from the prior forecast of $0.90 to $1.20. Despite the revenue miss, Schneider demonstrated operational efficiency, with adjusted income from operations increasing by 47% year-over-year to $44 million. Citi analysts have raised Schneider’s stock target to $24.00, maintaining a Neutral rating, while UBS analysts continue to support a Buy rating with a $25.00 price target. Schneider’s strategic pivot towards dedicated contract truckload business is highlighted, as is its robust position in the US/Mexico cross-border market. The company is also focusing on AI and digital technologies to drive future growth. As part of its strategy, Schneider is securing new business while withdrawing from contracts that do not meet its pricing criteria.
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