Benchmark Reiterates Buy Rating on Schneider National (SNDR)

Benchmark analyst Chris Kuhn reiterated a Buy rating and $30.00 price target on Schneider National (NYSE: SNDR).

The analyst commented: "We believe the TL sector continues to experience somewhat normal seasonality and our checks indicate a return to peak but it is tempered. There continues to be stabilization to slight sequential improvement in TL contractual rates in our view so, we think SNDR’s 3Q will be similar to 1H. We expect a slight improvement in 3Q earnings, but still muted sequential growth in 4Q and 1H 2025 given a recovery in truckload rates continues to be pushed out as a result of persistent oversupply in the market. With a surge in west coast loaded import volumes there is a pickup in domestic intermodal volume particularly in southern California, which is evidenced by strong growth from UNP, SNDR’s rail partner in the west. At the same time the rest of the network is generally weak, so peak surcharge fees cover container repositioning costs limiting potential for significant margin lift. TL and Intermodal rates, ex surcharge fees, could tread water for longer given continued oversupply in the market from growing private fleets and muted demand. Still, we are maintaining our 3Q estimates given SNDR is not trading volume for price and only slightly lower our 4Q 2024 and FY 2025 estimates given we believe we have adequately accounted for margins that will remain below long-term target levels due to lower for longer pricing."

For an analyst ratings summary and ratings history on Schneider National click here. For more ratings news on Schneider National click here.

Shares of Schneider National closed at $27.38 yesterday.

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