Hold Rating Maintained for TFI International Amid Structural and Cyclical Challenges

TFI International (TFII – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst J. Bruce Chan from Stifel Nicolaus maintained a Hold rating on the stock and has a $88.00 price target.

J. Bruce Chan has given his Hold rating due to a combination of factors impacting TFI International’s performance. The company’s first-quarter earnings per share fell short of both the firm’s and consensus estimates, indicating challenges across its various business segments. The Less-Than-Truckload (LTL) division, a significant part of TFI’s portfolio, is facing structural issues that are difficult to resolve, especially in a weakening economic environment.
Additionally, the Truckload segment is experiencing cyclical headwinds, exacerbated by exposure to tariff-sensitive markets, which have led to deteriorating margins. Although management is taking steps to address these issues, such as reducing fleet size and making leadership changes, the overall outlook remains uncertain. These factors contribute to the decision to maintain a Hold rating, suggesting that while there are potential improvements, significant risks and uncertainties persist.

According to TipRanks, Bruce Chan is an analyst with an average return of -1.7% and a 45.11% success rate. Bruce Chan covers the Industrials sector, focusing on stocks such as Old Dominion Freight, Saia, and XPO.

In another report released on April 24, BMO Capital also reiterated a Hold rating on the stock with a $88.00 price target.