Saia downgraded to Neutral at BofA following ‘sizable’ miss

As previously reported, BofA analyst Ken Hoexter downgraded Saia (SAIA) to Neutral from Buy with a price target of $251, down from $484, following a “sizable” yield miss in Q1 that points to price competitiveness in an industry with 30% excess capacity and an increasing desire to keep networks busy. The Less-than-Truckload carrier posted Q1 results well below the firm’s and Street’s targets, notes the firm, which contends that yield pressure will take time to fix after Saia rapidly expanded its network into a stalled macro backdrop.