Analysts give their verdicts on Schneider National- and it’s all positive
Every time a company holds its IPO, investors and the curious public alike take some time to assess the company’s shares’ performance after the issuance. Look at Snap Inc. for example. Snap Inc. was one of the first few tech companies to make an entry into the public market in 2017. Snap performed extremely well in its first days of trading, but still, people did not give their opinions on whether they thought it would make it. Instead, they said, let’s wait and see if its stock will go up or down, whether it’ll end up like Facebook or like Twitter.
Well, the story was the same with Schneider National (NYSE: SNDR). The US-based trucking and logistics company made significant returns during the first days of trading on its stock. The final figures are not in yet, but here is a look at how various underwriters in the deal label the company’s performance this far.
You do not have to look far to realize that almost all underwriter valuations on the company are higher than the valuation employed by Schneider National during its IPO. The shares also speak for themselves; Schneider National’s shares were going for $19 apiece by the end of its first day on the market. Now, they are up +3.79% to ride an easy $19.70 per share. With that in mind, some of the analyst ratings of the firm according to the Wall Street Journal include:
Schneider National got an ‘outperform’ rating from Wells Fargo Securities, Baird, Credit Suisse, UBS Investments as well as BofA Merrill Lynch. According to these analysts, the value of Schneider National shares is likely to increase over time. These managers had variations as to the estimated maximum closing value for the stock, but all their approximations fell within the range of between $22 and $24 a share. The outperform rating denoted that Schneider National shares are likely do better than those of their competitors in the market given time.
JP Morgan gave a differentiated rating although at the same $22 mark. The company’s analysts stated that Schneider National was likely to ‘overweigh’ the market. For anyone who’s been doing the investing jig that rating should make the company extremely attractive to you at present.
One insider that gave a cautionary rating was Stephens LLC. This firm did not indicate what its exact position on Schneider National was, but it did warn that most investment firms had given the logistics business a valuation that was too high.
Why Analysts envision positive outcomes for Schneider National
For anyone looking to launch an IPO, these might be a few pointers that you could use to improve the odds on the outcome.
Wells Fargo deemed Schneider National an outperformer because of its innovation. Other firms considered it the same because of its diversity. Schneider National fits both categories because unlike most other trucking companies, it offers a wide array of services from intermodal, cross docking, transportation of truck cargo to warehousing and logistics. This way, their customers don’t have to have different companies while distributing imports and exports.
Also, the trucking magnate is profitable, has a large free cash flow, EPS growth prospects, promising returns and capital efficiency. No wonder the valuations were high.