Citi downgrades Schneider National to Sell on ‘elevated’ valuation

Citi analyst Ariel Rosa downgraded Schneider National (SNDR) to Sell from Neutral with a price target of $30, down from $32. The firm cites the stock’s “historically elevated” valuation and “still-challenged market dynamics” which could weigh on the company’s first half of 2025 results for the downgrade. Truckload stocks carrying their highest valuations in more than a decade at roughly 30-times forward earnings, which sets up the prospect for significant multiple contraction going forward, likely eroding any potential upside from earnings growth that investors appear to be anticipating, the analyst tells investors in a research note.