Schneider National stock rating downgraded to Neutral by UBS

Published 05/09/2025, 10:44
Schneider National stock rating downgraded to Neutral by UBS

Investing.com - UBS downgraded Schneider National (NYSE:SNDR) from Buy to Neutral while raising its price target to $26.00 from $25.00. The transportation company, currently trading at $24.78 with a market capitalization of $4.34 billion, has seen its stock decline about 15% year-to-date.

The transportation and logistics company, which operates truckload, intermodal, and brokerage businesses, was downgraded due to limited visibility for upside potential in the near term. According to InvestingPro data, seven analysts have recently revised their earnings expectations downward for the upcoming period, though the company maintains strong fundamentals with a healthy current ratio of 1.91.

UBS analyst Thomas Wadewitz cited concerns about the truckload pricing cycle, noting that the firm now expects the anticipated high single-digit pricing gains to materialize in 2027 rather than 2026 as previously forecasted.

Despite acknowledging that Schneider’s dedicated business provides "a degree of resilience," UBS expressed "limited confidence in a strong truckload cycle upturn in 2026," prompting the rating change.

The firm indicated that Schneider is still positioned to benefit "from leverage across multiple business segments" when freight activity eventually rebounds and shipping demand increases.

In other recent news, Schneider National Inc . reported impressive financial results for the second quarter of 2025. The company’s earnings per share (EPS) reached $0.21, surpassing analysts’ forecast of $0.20. Additionally, Schneider National’s revenue exceeded expectations, coming in at $1.42 billion compared to the projected $1.41 billion. These results highlight the company’s stronger-than-anticipated performance during this period. The earnings announcement has garnered attention from the investment community. Analysts had projected slightly lower figures, making the actual results noteworthy. This development is part of the recent series of updates from Schneider National.

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