Saia's Q1 'Shocked Even The Bears': Analyst Slashes Price Target, Compares Fundamentals With Peers

Saia Inc (NASDAQ:SAI) reported results that "shocked even the bears," with significantly worse-than-expected yields, according to JPMorgan.

The Saia Analyst: Analyst Brian Ossenbeck maintained an Overweight rating, while slashing the price target from $436 to $299.

The Saia Thesis: Faced with pricing pressure due to intensifying competition, the higher weight per shipment did little to support margins and adversely impacted headline revenue," Ossenbeck said in the note.

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Contract renewals decelerated, with "customers shifting to other options," the analysts stated. Peers like TFI International rebuilt its network with small and medium businesses or scaled into larger network from scratch, like Knight-Swift Transportation Holdings Inc (NYSE:KNX), he added.

Rival XPO Inc (NYSE:XPO) may announce its second-quarter guidance closer to consensus expectations, given the "combination of self-help initiatives in cost savings and less net new door capacity additions compared to Saia," Ossenbeck further wrote.

SAI Price Action: Shares of Saia had declined by 2.91% to $238.47 at the time of publication on Monday.

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