Evercore ISI has increased its price target for Saia Inc. to $435.00 from $367.00, while maintaining an "In Line" rating on the transportation company.
Saia reported fourth-quarter 2025 earnings per share of $1.77, below Evercore’s $1.95 projection and the consensus Street estimate of $1.90. Top-line performance stood out as revenue exceeded expectations, a result Evercore attributed to slightly stronger volumes and yield. Despite the revenue beat, Saia's EBIT and operating ratio failed to meet analyst projections, with Evercore noting that an increase in insurance costs was a contributing factor and that those costs could be one-time in nature.
January shipping activity was softer than Evercore had anticipated, a shortfall the firm links largely to widespread winter storms. Evercore argues that if activity returns to seasonal norms or better for the remainder of the quarter, Saia's operating ratio should track better than seasonality in the first quarter and could post a year-over-year improvement bolstered by a stronger March.
For the full year, Saia's management expressed cautious optimism about demand in light of recent ISM data. Management outlined a potential operating-ratio improvement in the range of 100 to 200 basis points year over year. The higher end of that range assumes demand continues to firm following the improved January ISM reading; the lower end assumes a flattish volume backdrop.
Reflecting these dynamics, Evercore raised its full-year 2026 earnings-per-share estimate for Saia to $10.52 from $10.35. The firm's 2027 EPS forecast remains largely unchanged at $13.59.
In separate corporate results noted alongside the Saia coverage, Rapid7 Inc. posted fourth-quarter 2025 EPS of $0.44, beating expectations of $0.41. Revenue also outpaced forecasts, coming in at $217.39 million versus the anticipated $215.03 million. Despite the quarterly beat, Rapid7's outlook for 2026 was described as conservative, prompting a cautious market response and follow-up actions by several financial institutions.
Following Rapid7's announcement, Scotiabank cut its price target from $18 to $9 while keeping a Sector Perform rating. JP Morgan trimmed its price target from $20 to $11. Canaccord Genuity downgraded its recommendation from Buy to Hold and reduced its price target to $10 from $27. These analyst moves reflect the market's reaction to the company's current results and its forward guidance.
The Evercore adjustment to Saia's price target, coupled with the firm's modest increase to 2026 EPS expectations, underscores a view that operating ratios may improve if demand holds and seasonality rebounds. Still, near-term variability in volumes, weather-related disruptions, and unusual expense items remain factors to monitor as the year progresses.