Ken Hoexter, an analyst from Bank of America Securities, reiterated the Sell rating on Expeditors International. The associated price target remains the same with $118.00.
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Ken Hoexter has given his Sell rating due to a combination of factors affecting Expeditors International. Despite the company posting earnings per share that exceeded expectations, there are concerns about the sustainability of these results. The customs brokerage and ocean forwarding segments performed well, but there is uncertainty in the broader freight market, particularly with ocean rates softening as demand fails to keep up with increased capacity.
Additionally, while air freight volumes increased, the yields did not meet targets, and operating expenses were higher than anticipated. The overall freight environment is expected to remain uncertain, which limits near-term upside potential. Consequently, the valuation of Expeditors International’s shares is seen as limited, leading to the Sell rating with a price objective close to the current trading price.
In another report released today, TD Cowen also reiterated a Sell rating on the stock with a $111.00 price target.
Based on the recent corporate insider activity of 42 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.