Analyst Ken Hoexter from Bank of America Securities reiterated a Buy rating on Saia (SAIA – Research Report) and decreased the price target to $565.00 from $600.00.
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Ken Hoexter has given his Buy rating due to a combination of factors indicating strong future performance for Saia. The company demonstrated impressive growth in the fourth quarter with an increase in shipments and weight per shipment, which contributed to exceeding earnings expectations. Despite a slight dip in revenue per hundredweight, Saia’s strategic focus on optimizing its mix and expanding its network is expected to drive improved margins in the long term.
Saia’s aggressive expansion, including the opening of new terminals, positions it well for future growth. The company anticipates only moderate margin headwinds as these new facilities scale up to the average operating ratio. With anticipated margin improvements and stable pricing discipline, along with the potential upside from macroeconomic conditions, Ken Hoexter reiterates a Buy rating, albeit with a slightly adjusted price objective to reflect EPS growth expectations.
Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SAIA in relation to earlier this year.