Analyst Christopher Kuhn of Benchmark Co. maintained a Buy rating on Saia, retaining the price target of $360.00.
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Christopher Kuhn has given his Buy rating due to a combination of factors influencing Saia’s current and future performance. Despite facing a challenging year with limited yield growth and high operating ratios compared to its peers, Saia’s recent expansion with 21 new terminals is expected to improve profitability over time. These new sites, initially unprofitable, have shown progress towards profitability, which is anticipated to enhance margins as lower-weighted volumes exit the network.
Furthermore, Saia’s tonnage trends have been more favorable than expected, outperforming competitors and prompting upward revisions to earnings estimates for the third quarter and fiscal year 2025. While the freight environment remains challenging, the company’s volume growth and shipment trends are tracking ahead of expectations, supporting the Buy rating. Kuhn maintains a price target of $360, emphasizing the potential for long-term returns if Saia demonstrates improvement in operating ratios over the coming quarters.
In another report released on September 11, Citi also maintained a Buy rating on the stock with a $373.00 price target.