XPO’s Resilient Performance and Strategic Initiatives Support Buy Rating Amid Challenging Market Conditions

Analyst Jason Seidl from TD Cowen reiterated a Buy rating on XPO (XPO – Research Report) and keeping the price target at $136.00.

Jason Seidl’s rating is based on XPO’s performance in a challenging market environment, where the company has demonstrated resilience in its pricing and margins despite weak demand. The company’s first-quarter results exceeded expectations, with adjusted earnings per share surpassing both the firm’s and the market’s forecasts. This performance was bolstered by strong consolidated margins in both North America and Europe.
Additionally, XPO has shown improvement in its operating ratio, with expectations of further margin enhancements in the upcoming quarters. The company’s strategic initiatives, such as cost management and productivity improvements, have positioned it well to maintain pricing strength and margin growth. Despite potential challenges in tonnage, XPO’s ability to manage controllable factors and its optimistic margin outlook for the future support the Buy rating.

In another report released today, Barclays also maintained a Buy rating on the stock with a $125.00 price target.