Analyst Ken Hoexter of Bank of America Securities reiterated a Buy rating on XPO, boosting the price target to $150.00.
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Ken Hoexter has given his Buy rating due to a combination of factors including XPO’s ability to outperform its peers in terms of margin gains and its strategic improvements in operating ratios. Despite slightly lowering estimates for the second quarter, XPO’s margins are expected to surpass typical seasonal trends and those of its competitors, with a projected sequential improvement in operating ratios.
Furthermore, XPO’s pricing strategy is anticipated to drive revenue growth throughout 2025, with expectations of significant improvement in revenue per shipment and revenue per hundredweight, excluding fuel. The company’s continued enhancements in market share, service levels, and profitability metrics justify a premium valuation, leading to an increased price objective of $150, making XPO a top pick in the sector.
According to TipRanks, Hoexter is a 3-star analyst with an average return of 1.9% and a 50.40% success rate. Hoexter covers the Industrials sector, focusing on stocks such as CSX, XPO, and Werner Enterprises.
In another report released on June 30, Truist Financial also maintained a Buy rating on the stock with a $135.00 price target.