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Thursday — UBS analyst Thomas Wadewitz has reaffirmed a Buy rating on Saia Inc. (NASDAQ:SAIA) with a steady price target of $305.00, following a recent meeting with the company’s top executives. Currently trading at $265.06, the stock sits between analysts’ targets ranging from $250 to $387, with InvestingPro data showing 18 analysts recently revising their earnings expectations downward for the upcoming period. The meeting with Saia’s CEO and CFO, which occurred on Tuesday, was aimed at addressing the significant earnings per share (EPS) miss in the first quarter and whether the contributing factors were permanent or temporary. Despite recent challenges, the company maintains healthy fundamentals with a current ratio of 1.43 and operates with a moderate debt-to-equity ratio of 0.18.
Saia management attributed the shortfall in first-quarter revenue and the lack of increased activity in March to adverse weather conditions and a decline in shipments at legacy terminals that traditionally have higher margins. These challenges were highlighted as significant headwinds for the quarter.
Despite the first-quarter difficulties, Wadewitz does not view these issues as structural. Instead, he believes that Saia has the potential for margin expansion and EPS growth over a multi-year horizon. The analyst expressed confidence in the company’s long-term prospects but also cautioned that achieving improved margin performance will require patience and time.
The transportation company’s recent performance has been scrutinized, especially after the unexpected dip in earnings. Saia’s management has outlined steps they are taking to address the revenue shortfall and improve operations moving forward.
Investors and stakeholders of Saia Inc. can expect that the company’s path to recovery and growth might be gradual. The UBS analyst’s reiterated Buy rating and price target indicate a belief in Saia’s capabilities to overcome its current challenges and deliver on its growth potential in the coming years. According to InvestingPro, the stock appears fairly valued at current levels, with a P/E ratio of 21.8x and an EV/EBITDA of 11.2x. For deeper insights into Saia’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 14 additional ProTips and extensive financial metrics.
In other recent news, Saia Inc. has faced a series of analyst revisions following its first-quarter 2025 performance, which fell short of expectations. Stifel analysts reduced the company’s price target from $480 to $277, while maintaining a Buy rating, citing challenges with tonnage and operating ratios that surpassed 90%. Benchmark also lowered its price target to $325 from $450, highlighting a 30% earnings shortfall and noting adverse weather and declining shipment growth in older terminals as contributing factors. Raymond (NSE:RYMD) James adjusted Saia’s price target to $310 from $455, maintaining an Outperform rating, and expressed optimism about the company’s strategic investments in capacity for future growth. Morgan Stanley (NYSE:MS) upgraded Saia’s rating from Underweight to Equalweight, despite cutting the price target to $250, reflecting a recalibration of expectations. BMO Capital Markets downgraded Saia from Outperform to Market Perform, reducing the price target to $285, due to challenges in balancing network expansion with profitability amid a freight recession. Despite these adjustments, some analysts maintain a positive outlook on Saia’s long-term prospects and the logistics sector overall.
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