Schneider National's Buy Rating and Price Target Raised to $34 by Benchmark

Benchmark raised Schneider National's price target to $34 from $32, keeping a Buy rating. The firm believes the acquisition of Cowan Systems aligns with Schneider's strategy to grow its Dedicated service offering. The new price target reflects the estimated mid-cycle EPS of $1.71.

Schneider National, Inc. (SNDR) reported a mixed third quarter, with earnings falling short of analyst estimates, but revenue coming in slightly above expectations [1]. Despite the shortfall in earnings, the company's Dedicated and Intermodal businesses demonstrated resilience, with Dedicated achieving robust new business and Intermodal experiencing margin growth [1].

In response to these results, BofA Securities analyst Ken Hoexter upgraded Schneider National from Underperform to Buy and raised the price target from $27 to $34 [1]. Hoexter's optimistic outlook is based on the belief that the acquisition of Cowan Systems aligns with Schneider's strategy to grow its Dedicated service offering [1].

Cowan Systems, a leading provider of trucking and logistics services, will complement Schneider's existing portfolio, enabling the company to expand its reach and enhance its service offerings [2]. The acquisition is expected to contribute to Schneider's mid-cycle earnings per share (EPS) of $1.71 [1].

However, Schneider National faces challenges in the short term. Intermodal volumes are expected to remain under pressure due to negative import and export Twenty Equipment Unit (TEU) growth [2]. Furthermore, intermodal prices and loads will likely be affected by lower truckload rates, which could impact margins [2].

Benchmark analyst Christopher Kuhn reiterated his Buy rating and $34 price target for Schneider National, acknowledging the short-term challenges but maintaining a positive outlook on the company's long-term potential [2].

Sources:
[1] Benzinga. These Analysts Revise Their Forecasts on Schneider National Following Q3 Earnings. https://www.benzinga.com/news/earnings/24/11/41809045/these-analysts-revise-their-forecasts-on-schneider-national-following-q3-earnings
[2] Benzinga. Analysts Take on Schneider National's Long-Term Potential Amid Short-Term Challenges. https://www.benzinga.com/news/23/07/33136703/analysts-take-on-schneider-national-long-term-potential-amid-short-term-challenges