XPO’s Market Leadership and Growth Potential Justify Buy Rating

Bank of America Securities analyst Ken Hoexter reiterated a Buy rating on XPO (XPO – Research Report) yesterday and set a price target of $139.00.

Ken Hoexter has given his Buy rating due to a combination of factors that highlight XPO’s strong market position and growth potential. XPO has demonstrated significant gains in market share, particularly with profitable small- to medium-sized local business customers, which is a key driver of its outperformance compared to peers like Old Dominion. The company’s shipments with local accounts have shown mid-single-digit growth, contrasting with the overall market’s decline, indicating robust demand and customer loyalty.
Furthermore, XPO’s less-than-truckload (LTL) operations have shown improvements in average weight per shipment, suggesting efficiency gains and potential for higher margins. Despite a slight underperformance in shipment levels, XPO’s operating ratio is expected to improve significantly, outpacing its public peers. This operational strength, combined with a favorable valuation multiple and a price objective of $139, supports the Buy rating, positioning XPO as a leader in the transport sector.

XPO’s price has also changed moderately for the past six months – from $155.130 to $114.930, which is a -25.91% drop .