Wolfe Research analyst Scott Group maintains $XPO (XPO.US)$ with a buy rating, and adjusts the target price from $105 to $143.
According to TipRanks data, the analyst has a success rate of 56.5% and a total average return of 8.0% over the past year.
Furthermore, according to the comprehensive report, the opinions of $XPO (XPO.US)$'s main analysts recently are as follows:
The forecast for Q3 EPS for less-than-truckload shippers has been adjusted downwards, leading to a reduction in the EPS forecasts for 2025/2026 based on lower starting points. This revision primarily stems from the generally weak operational updates in the middle of Q3 from these companies. Despite this, there are still solid volume intake trends observed for Saia (SAIA) as it continues to expand its network with new terminal openings.
The initiation of coverage on transportation and logistics companies reflects a broadly optimistic outlook. Analysis indicates that the cyclical downturn in the transport sector is approaching its latter stages, with current rates and margins nearing their low points. This situation is anticipated to lead to a significant uptick in earnings growth by 2025 and 2026 as the rates begin to rebound. The favorable perspective is reinforced by the belief that many companies in the sector possess robust leadership teams known for their strategic capital management, which is crucial given the sector's vital role in the North American economic framework. This essential nature of transportation services also minimizes the likelihood of major disruptions or the risk of these services being supplanted. Analysts recommend investors to align their investments to benefit from the expected cyclical upturn and to focus on companies that are poised to gain disproportionately from the tightening of freight conditions.
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