Analyst Ken Hoexter from Bank of America Securities reiterated a Buy rating on XPO and increased the price target to $158.00 from $151.00.
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Ken Hoexter has given his Buy rating due to a combination of factors, despite some challenges faced by XPO. The company reported a decline in November’s tons per day, which was below expectations and indicative of market weakness. However, XPO continues to outperform its peers by focusing on higher-margin local channel customers, which helps mitigate some of the negative impacts of the broader market conditions.
Moreover, XPO is expected to achieve a significant improvement in its operating ratio compared to its competitors, despite slightly missing its initial target for margin gains. This operational efficiency, combined with a strategic focus on revenue growth excluding fuel costs, supports the positive outlook. Consequently, Ken Hoexter raised the price objective for XPO to $158, reflecting confidence in the company’s ability to leverage its strengths and outperform the industry.
According to TipRanks, Hoexter is a 3-star analyst with an average return of 1.9% and a 47.32% success rate. Hoexter covers the Industrials sector, focusing on stocks such as CSX, FedEx, and XPO.
In another report released on November 26, Rothschild & Co Redburn also initiated coverage with a Buy rating on the stock with a $156.00 price target.