Schneider National Inc. (NYSE: SNDR) recently entered the market in its initial public offering (IPO), and shares have since stayed in a relatively tight range. However, now that the quiet period is over, analysts are taking the opportunity to weigh in on the stock, and many are calling for it to go higher.
24/7 Wall St. has included what a few different analysts are saying specifically about the stock in their reports, as well as a montage on how analysts feel in general. Keep in mind the underwriters for this IPO were Morgan Stanley, UBS Investment, Merrill Lynch, Citigroup, Credit Suisse, JPMorgan, Wells Fargo, Baird and Wolfe Capital Markets.
Merrill Lynch initiated Schneider’s shares with a Buy rating and $23 price objective. The brokerage firm noted that the company is an iconic diversified transport provider. The second largest truck company has diversified customers, transformative tech, e-commerce reach and benefits from improving macro. Schneider also trades at a large discount to its group.
Credit Suisse initiated coverage with an Outperform rating for the stock and a $24 price target. The firm commented in its report:
We believe that Schneider is poised for solid profit, EPS, and free cash flow (FCF) growth over the coming few years, which would be amplified by improved demand if an inflection point in Truckload arrives sooner than we expect. Moreover, with the potential for improved returns and capital efficiency (ROIIC) along with what we see as a compelling entry point, we think that SNDR is a low-beta, high-quality name that is suitable for investors looking for exposure to trucking and logistics, particularly at a point in the cycle in which fundamentals are weak.
A few other analysts weighed in on the stock as well:
- JPMorgan initiated it with an Overweight rating and a $22 price target.
- Morgan Stanley initiated it at Overweight with a $24 price target.
- Wells Fargo initiated it with an Outperform rating.
- Baird initiated it at Outperform with a $22 price target.
Shares of Schneider National were last seen up 3.8% at $19.70 Monday morning, with a consensus analyst price target of $18.00 and a post-IPO trading range of $18.41 to $19.91.