Analyst Ken Hoexter from Bank of America Securities reiterated a Buy rating on CH Robinson (CHRW – Research Report) and decreased the price target to $119.00 from $122.00.
Ken Hoexter has given his Buy rating due to a combination of factors including the expected margin growth in C.H. Robinson’s North American Surface Transportation segment, which is anticipated to benefit from a shift in market conditions. The company is leveraging its systems, AI, and expertise to improve pricing and procurement efficiency, aiming to expand gross margins and outperform the Cass shipments index.
Additionally, despite challenges in the Global Forwarding segment due to declining ocean and air rates, C.H. Robinson’s focus on productivity and cost management is expected to drive earnings growth. The company’s plans to enhance free cash flow and resume stock buybacks in 2025 further support the positive outlook, justifying the Buy rating with a price objective of $119.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $125.00 price target.