Analyst's Take on Schneider National - Long-Term Potential Amid Short-Term Challenges
Portfolio Pulse from Anusuya Lahiri
Benchmark analyst Christopher Kuhn reiterated a Buy rating for Schneider National Inc (SNDR) with a $34 price target, despite lowering estimates ahead of its 2Q 2023 report. The lack of a seasonal uptick in 2Q has led to lower Intermodal volumes, impacting margins. Truckload volumes and rates were also lower in 2Q. However, the company's shift from truckload to intermodal and dedicated, and its plan to double its intermodal business by 2030, are seen as positive long-term strategies. The analyst reduced his 2Q 2023, FY 2023, and 2024 EPS estimates due to lower Intermodal, Truckload, and Logistics revenue and margins.
July 06, 2023 | 5:47 pm
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POSITIVE IMPACT
Union Pacific Corp's partnership with Schneider National Inc and its less severe decline in rail intermodal volume growth are seen as positive.
Union Pacific Corp's partnership with Schneider National Inc and its less severe decline in rail intermodal volume growth compared to the total N.A. rail intermodal volume growth are seen as positive for the company, which could positively impact its stock.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEUTRAL IMPACT
Schneider National Inc's stock may face short-term challenges due to lower Intermodal volumes and margins. However, the company's long-term strategy to shift from truckload to intermodal and dedicated, and its plan to double its intermodal business by 2030, are seen as positive.
The analyst's lowered estimates for Schneider National Inc's 2Q 2023 report due to lower Intermodal volumes and margins may negatively impact the stock in the short term. However, the company's long-term strategy to shift from truckload to intermodal and dedicated, and its plan to double its intermodal business by 2030, are seen as positive for the stock in the long term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Knight-Swift Transportation Holdings Inc's pre-release was mentioned as evidence of lower truckload volumes and rates in 2Q.
The mention of Knight-Swift Transportation Holdings Inc's pre-release as evidence of lower truckload volumes and rates in 2Q suggests that the company may also be facing similar challenges as Schneider National Inc, which could negatively impact its stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50