Saia upgraded to Neutral at BofA as worst fears avoided

BofA analyst Ken Hoexter upgraded Saia (SAIA) to Neutral from Underperform with a price target of $310, up from $267. The firm had expected industry leaders such as Old Dominion (ODFL) and Saia to see additional volume and margin pressures, but as truckers enter the trough period in the middle of 2023, Saia was able to stabilize its operating ratio, the firm noted. This sustainability despite LTL tons/day falling 5.5% year-over-year and revenue per hundredweight excluding fuel surcharges rising 4.5% "shows the dedication of Saia on keeping pricing gains as volumes fade in a slowdown," BofA contends. However, the firm does not go to a Buy rating, stating that the recent run up in the stock "keeps us in check."