Bank of America slashes price target on trucking company Saia by nearly 50% on heels of its biggest decline ever
Bank of America downgraded shares of Saia to “neutral” from “buy” and slashed its price target by 48% to $251 after the trucking company posted disastrous quarterly results and plummeted more than 30% on Friday, its worst session on record.
“The Less-than-Truckload (LTL) carrier posted 1Q results well below our/ Street’s targets, given a lack of seasonal rebound in March from Feb. (which continued into April), mix pressure (regional carriers gaining share), and cost pressures, as SAIA rapidly expanded its network into a stalled macro backdrop,” analyst Ken Boexter wrote. “Recent macro economic and yield pressure suggests increased price competitiveness in the industry, which likely sustains itself in an industry with 30% excess capacity and a desire to keep networks busy.”
Prior to Saia’s results, Boexter saw upside of more than 35% in the stock. Now, he expects just a modest increase over the coming 12 months.
