XPO’s Strategic Execution and Technological Investments Drive Strong Buy Rating

BMO Capital analyst Fadi Chamoun reiterated a Buy rating on XPO (XPO – Research Report) today and set a price target of $140.00.

Fadi Chamoun has given his Buy rating due to a combination of factors that highlight XPO’s strong execution against its strategic priorities. Despite a challenging macroeconomic environment, XPO has demonstrated robust performance since the initiation of its transformation plan in late 2022. The company’s focus on improving service levels, pricing, and operating efficiency has reinforced confidence in its near-term and medium-term financial outlook.
Chamoun notes that XPO is on track to deliver strong operational results, with improvements in revenue quality and productivity gains, including the use of AI-based tools. These efforts are expected to support significant expansion in operating margins and free cash flow. Additionally, XPO’s strategic investments in technology and reduced reliance on purchased transportation position the company well for future demand increases, potentially supporting a valuation in the $200 range.

In another report released on June 11, Wells Fargo also maintained a Buy rating on the stock with a $116.00 price target.