Bank of America Securities analyst Ken Hoexter has reiterated their bullish stance on XPO stock, giving a Buy rating today.
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Ken Hoexter’s rating is based on XPO’s strong performance in cost management, yield, and service improvements, which have helped narrow the operating margin gap with top competitors. Despite a slight decline in EPS year-over-year, XPO exceeded both Ken’s and the Street’s estimates, driven by robust results in Europe and stable performance in the Less-Than-Truckload segment.
Furthermore, XPO’s strategic focus on reducing outsourced linehaul miles and enhancing service offerings has resulted in significant cost savings and revenue growth per hundredweight. The company’s ability to maintain a stable operating ratio in the face of typical seasonal declines further supports the Buy rating. Ken believes that XPO’s ongoing improvements in market share, service levels, and profitability justify a premium valuation, leading to a price objective of $141.
According to TipRanks, Hoexter is a 3-star analyst with an average return of 1.5% and a 47.70% success rate. Hoexter covers the Industrials sector, focusing on stocks such as CSX, ArcBest, and XPO.
In another report released today, Barclays also maintained a Buy rating on the stock with a $145.00 price target.