TD Cowen analyst Jason Seidl maintained a Sell rating on Expeditors International (EXPD – Research Report) today and set a price target of $107.00.
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Jason Seidl has given his Sell rating due to a combination of factors impacting Expeditors International. Despite the company’s first-quarter performance surpassing expectations, this was largely driven by temporary factors such as pull-forward effects, which are not sustainable and may negatively affect the second quarter. Additionally, while there was strength in customs brokerage, overall demand is weakened by tariffs, and the prolonged dry spell in freight could lead to volatility once tariff uncertainties are resolved.
Furthermore, although ocean container volumes and revenues saw significant growth in the first quarter, this was attributed to front-loading ahead of tariffs, and the excess capacity among ocean carriers suggests that these rates may not be sustainable. The outlook for ocean revenue is concerning, with expected sequential declines due to reduced imports. Air freight volumes also showed growth, but the elimination of de minimis is expected to create a significant challenge in the second quarter, with limited potential for earnings growth from conversions to the ocean network. These factors contribute to a cautious outlook, justifying the Sell rating.
In another report released today, Barclays also maintained a Sell rating on the stock with a $105.00 price target.
Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EXPD in relation to earlier this year.