XPO Logistics downgraded to Neutral from Outperform at Credit Suisse

Credit Suisse analyst Ariel Rosa downgraded XPO Logistics to Neutral from Outperform with a price target of $78, up from $55. The strong year-to-date rally in XPO shares against a weak freight demand backdrop suggests investors are already looking past challenging current freight market conditions, the analyst tells investors in a research note. The firm says that if XPO can emulate some of the success of best-in-class peers, the company should have ample runway for long-term margin improvement. Nevertheless, this progress could take time, and its success remains uncertain, writes Credit Suisse.