Schneider National, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst David Hicks CFA from Raymond James upgraded the rating on the stock to a Buy and gave it a $28.00 price target.
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David Hicks CFA has given his Buy rating due to a combination of factors that highlight Schneider National’s strategic positioning and growth potential. The company has shifted towards a more stable earnings base by increasing its focus on Dedicated and Intermodal services, which now make up a significant portion of its operations. This strategic shift has reduced earnings volatility compared to its peers, positioning Schneider to benefit from market cycles as supply exits and pricing normalizes.
Moreover, the outlook for both Dedicated and Intermodal segments remains positive. The easing growth of private fleets has improved the competitive landscape for Dedicated services, while the enhanced rail service quality supports Intermodal growth. Schneider’s underutilized Intermodal assets and the recent increase in Dedicated wins further underscore its growth potential. With shares appearing undervalued relative to mid-cycle earnings power and tangible book value, the risk/reward profile is attractive, justifying the Buy rating.