Stifel downgrades Schneider National to Hold amid ‘tepid cycle turn’

Stifel downgraded Schneider National to Hold from Buy with an unchanged price target of $25. While there were some positive indicators for Schneider in Q2, including a return to seasonally-normal demand patterns and brief capacity tightening around the summer holidays, weak rates across the portfolio continued hampering results, the analyst tells investors in a research note. The firm says that similar to peers, management underestimated the depth and duration of this rate trough, leading to yet another earnings guide down. With the stock still up 10% year-to-date and an “already tepid cycle turn that continues to move out to the right, ” Stifel wants to narrow its focus within the group, saying there are other opportunities that offer more relative upside potential.