Stifel upgraded Schneider National (NYSE: SNDR) from Hold to Buy with a price target of $25. Shares rose more than 3% intra-day Friday following the call.

The firm said Schneider's shares had underperformed this year amid prolonged weakness in freight markets, driven by slow capacity exits and depressed demand. Valuation declines, particularly relative to peers, had made the risk-reward more favorable.

Stifel said it was encouraged by signs of tightening supply from regulatory pressures, which could set the stage for a cyclical recovery. The firm added that at current levels, the stock's potential upside outweighed downside risks, assuming demand conditions remain stable.