Bank of America Securities analyst Ken Hoexter reiterated a Hold rating on Expeditors International today and set a price target of $150.00.
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Ken Hoexter has given his Hold rating due to a combination of factors influencing Expeditors International’s current market position. The company is experiencing strong demand in its Customs Brokerage segment, driven by increased tariff complexity, which is expected to generate new revenue streams over the medium term. Additionally, Expeditors is leveraging AI infrastructure to enhance productivity, although these gains are anticipated to be gradual and long-term.
Despite these positive developments, there are challenges that justify the Hold rating. The Ocean forwarding segment is under pressure due to rate volatility and some share loss as customers opt for direct dealings with container liners. While the company has increased its price objective to $150, reflecting potential productivity improvements and share gains, the uncertain demand and rate environment contribute to maintaining a neutral stance. Overall, the balance of growth opportunities and market uncertainties supports the Hold recommendation.