Saia Upgraded To Buy: Analyst Sees Long-Term Opportunity Amid Industry Tailwinds
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 24 2024
0mins
Source: Benzinga
- Stifel Analyst Upgrade: Stifel analyst J. Bruce Chan upgraded Saia, Inc. from Hold to Buy and adjusted the price target from $526 to $475.
- Reasoning Behind Upgrade: The upgrade was based on SAIA's potential to increase market share in a growing LTL industry with improving pricing power despite recent performance.
- Analyst's View on Saia: While acknowledging execution risks in growth plans, the analyst sees a fundamental opportunity for Saia with continued share growth potential.
- Revised EPS Estimates: The analyst revised EPS estimates for FY24 to $16.06 (from $15.45) and for FY25 to $19.50 (from $19.00).
- Investment Opportunities: Investors can consider exposure to Saia through ProShares Trust ProShares Supply Chain Logistics ETF SUPL and Alger Mid Cap 40 ETF FRTY.
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Analyst Views on SAIA
Wall Street analysts forecast SAIA stock price to fall
18 Analyst Rating
9 Buy
9 Hold
0 Sell
Moderate Buy
Current: 482.870
Low
250.00
Averages
350.29
High
431.00
Current: 482.870
Low
250.00
Averages
350.29
High
431.00
About SAIA
Saia, Inc., is a transportation company. The Company provides less-than-truckload (LTL) services through a single integrated organization. It offers customers a wide range of other value-added services, including non-asset truckload, expedited and logistics services across North America. Saia Motor Freight Line, LLC (Saia LTL Freight), a subsidiary of the Company, is an LTL carrier that provides direct service to the 48 contiguous states and provides LTL services to Canada and Mexico through relationships with third-party interline carriers. Saia LTL Freight specializes in offering its customers a range of LTL services, including time-definite and expedited options. Saia LTL Freight provides its customers with solutions for shipments between 100 and 10,000 pounds. Saia LTL Freight operates a network comprised of 213 owned and leased terminals, plus three general offices and one warehouse and owns over 7,700 tractors and 26,500 trailers, including equipment acquired with finance leases.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strategic Transformation: CEO Raj Subramaniam's four strategic priorities since 2022 focus on high-margin verticals, driving growth in healthcare, automotive, aerospace, and data center markets, which collectively represent a $130 billion market opportunity.
- Independent Operational Advantages: Following the June 1 spinoff of its Freight business, FedEx Freight is projected to generate $8.7 billion in revenue and achieve an adjusted operating margin of around 12% by fiscal 2028, allowing for greater flexibility in improving customer service and productivity.
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