Saia: Near-Term Headwinds but Expanding Network and Operating Ratio Improvement Support Buy Rating and Premium Valuation

Saia, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Christopher Kuhn from Benchmark Co. maintained a Buy rating on the stock and has a $360.00 price target.Claim 50% Off TipRanks Premium and Invest with Confidence Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential Christopher Kuhn has given his Buy rating due to a combination of factors that look beyond a difficult near-term backdrop and focus on Saia’s improving medium‑term earnings power. He acknowledges that 2025 is likely to remain challenging, with constrained yield growth and a relatively high operating ratio versus non‑union LTL peers, which has weighed on recent stock performance. However, he highlights that Saia’s sustained investment in new terminals and its expanding network have already driven outsized volume growth and better relative performance than key competitors, even in a soft freight market. Kuhn also points to fourth‑quarter tonnage trends that are running ahead of his expectations and outperforming certain major peers, reinforcing his view that the company is gaining share and improving network density despite near‑term headwinds. At the same time, Kuhn notes that revenue per shipment is temporarily pressured by freight mix, seasonal factors, and increased exposure to shorter‑haul lanes, but views these developments as supportive of long‑term efficiency as density improves. He believes that as demand normalizes, the broader and denser network should allow Saia to better leverage its fixed cost base and move its operating ratio into the low‑80s over time. While he makes a modest reduction to his 2026 earnings forecast and introduces a 2027 estimate that sits slightly below the Street, he still sees attractive upside embedded in his $360 price target, which implies a premium valuation multiple on 2026 earnings. Overall, Kuhn maintains that successful execution on operating ratio improvement over the coming quarters would validate Saia’s expansion strategy and underpin solid long‑term shareholder returns, supporting his continued Buy recommendation. According to TipRanks, Kuhn is a 4-star analyst with an average return of 13.0% and a 66.10% success rate. Kuhn covers the Industrials sector, focusing on stocks such as XPO, Saia, and Old Dominion Freight. In another report released on December 9, TR | OpenAI – 4o also upgraded the stock to a Buy with a $370.00 price target.