Saia’s Performance Faces Seasonal Challenges: Hold Rating Maintained Amid Adjusted Targets and Valuation

Saia (SAIA – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Ken Hoexter from Bank of America Securities reiterated a Hold rating on the stock and has a $278.00 price target.

Ken Hoexter has given his Hold rating due to a combination of factors impacting Saia’s performance. The company’s May tons per day fell short of expectations, with a slight decline compared to the previous year, and a notable decrease in weight per shipment. This was attributed to seasonal shipment shifts and potential retail mix impacts between the first and second quarters. As a result, Hoexter adjusted the targets for tons per day and weight per shipment downward.
Additionally, while Saia’s operating ratio target shows some improvement, it remains slightly below its historical average. The company’s performance is progressing in line with sub-seasonal expectations, which limits the potential for significant growth. Despite these challenges, Saia continues to outperform some peers in terms of tons per day change, which supports the Hold rating. Hoexter also lowered the price objective to $278, reflecting a more normalized valuation compared to industry leaders, while still acknowledging Saia’s growth prospects.

Hoexter covers the Industrials sector, focusing on stocks such as CSX, XPO, and CH Robinson. According to TipRanks, Hoexter has an average return of 1.5% and a 48.19% success rate on recommended stocks.