Ken Hoexter, an analyst from Bank of America Securities, reiterated the Buy rating on XPO (XPO – Research Report). The associated price target was lowered to $119.00.
Ken Hoexter has given his Buy rating due to a combination of factors including XPO’s ongoing improvements in its Less-than-Truckload (LTL) operations. The company is making strides in narrowing the margin gap with its top competitor, Old Dominion, and has set ambitious targets for improving its adjusted operating ratio in the coming years. Despite a challenging volume environment, XPO is confident in achieving significant margin gains, driven by enhanced service quality and expansion of premium offerings.
Moreover, XPO has demonstrated strong pricing momentum and growth in local channel segments, which are expected to bolster yields throughout 2025. The company’s recent financial performance, including a better-than-expected adjusted EPS and operational improvements in its European segment, further supports the Buy rating. While the price objective has been adjusted to $119 due to freight recession pressures, the overall outlook remains positive with expectations of mid-20’s average EPS growth in the subsequent years.
Hoexter covers the Industrials sector, focusing on stocks such as XPO, Westinghouse Air Brake Technologies, and Saia. According to TipRanks, Hoexter has an average return of 0.8% and a 43.78% success rate on recommended stocks.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $125.00 price target.