XPO Logistics downgraded to Hold from Buy at Jefferies

Jefferies analyst Stephanie Moore downgraded XPO Logistics to Hold from Buy with a price target of $40, down from $42. Despite a Q4 beat, shares sold off 14% post earnings yesterday, which the firm attributes to investor disappointment in a lower-than-peer yield and, "most importantly," an apparent shift in strategy to go after national account volumes to build density, even at the expense of price. The firm believes the stock "will be in the penalty box" as investors remain skeptical about XPO’s actions to go after certain volumes at the expense of near-term price. Though Jefferies understand the intended density improvements, the "ultimate benefit of this strategy will not be apparent until the freight market recovers," the firm said.