Benchmark Co. analyst Christopher Kuhn has maintained their bullish stance on SNDR stock, giving a Buy rating on October 7.
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Christopher Kuhn has given his Buy rating due to a combination of factors that suggest Schneider National is well-positioned for future growth despite current challenges. The company’s Truckload segment, although experiencing some near-term pressure, is expected to see double-digit revenue growth primarily due to the Cowan acquisition, which has expanded the Dedicated business. This segment remains the most stable part of Schneider’s portfolio, representing a significant portion of the Truckload fleet.
Moreover, Kuhn highlights the potential benefits from Schneider’s new partnerships and the anticipated cyclical recovery in the freight market. Although current freight volumes are below normal seasonal levels, the company is expected to benefit from improving rail services and pent-up intermodal demand. Despite reducing earnings estimates, Kuhn maintains a $31 price target, viewing the stock’s premium valuation as justified by its potential for margin recovery, particularly in the Network business.
In another report released on October 7, Stifel Nicolaus also upgraded the stock to a Buy with a $25.00 price target.