Bank of America Securities analyst Ken Hoexter has reiterated their bullish stance on XPO stock, giving a Buy rating on February 24.
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Ken Hoexter has given his Buy rating due to a combination of factors including XPO’s performance and strategic focus. Despite a slight decline in February’s tons per day compared to the previous year, the company managed to exceed typical seasonal expectations, indicating resilience in its operations. XPO’s management has reiterated their commitment to improving margins, with a target that surpasses the average deterioration expected among peers, showcasing their focus on productivity and service enhancements.
Additionally, Hoexter acknowledges the challenging industrial environment and the impact of Yellow’s bankruptcy, yet remains optimistic about XPO’s ability to drive sequential pricing growth and maintain strong cash flow. Although the price objective was adjusted to $150 due to market concerns, the outlook for sustained earnings growth and improving returns supports the Buy rating. The analyst’s confidence is further bolstered by XPO’s strategic initiatives aimed at enhancing yield and operational efficiency.
Hoexter covers the Industrials sector, focusing on stocks such as Westinghouse Air Brake Technologies, XPO, and Knight Transportation. According to TipRanks, Hoexter has an average return of 3.1% and a 47.28% success rate on recommended stocks.
In another report released on February 24, Benchmark Co. also maintained a Buy rating on the stock with a $160.00 price target.