EU and US could reach trade deal this weekend - Reuters
On Thursday, BMO Capital Markets adjusted its outlook on C.H. Robinson Worldwide (NASDAQ:CHRW) shares, reducing the price target to $105 from the previous $113 while retaining a Market Perform rating on the stock. The revision follows the company’s recent earnings report, which revealed a mix of outcomes within its business segments. According to InvestingPro data, 10 analysts have recently revised their earnings estimates downward for the upcoming period, with the stock currently trading at a P/E ratio of 22.7x.
C.H. Robinson, a $10.5 billion market cap logistics company, reported earnings that surpassed expectations, primarily due to a robust showing by its North American Surface Transportation (NAST) segment. This strength helped to mitigate some of the challenges faced by the company’s Forwarding business. Despite the better-than-expected results, BMO Capital has revised its forecasts for the freight market’s recovery timeline and anticipates a more pronounced downturn in the Forwarding sector. InvestingPro analysis reveals the company operates with relatively weak gross profit margins of 7.5%, reflecting the competitive nature of the logistics industry.
As a consequence of these updated expectations, BMO Capital has revised its earnings per share (EPS) projections for fiscal years 2025 and 2026 downward by 3%. This change in EPS forecasts is cited as the primary reason for the adjustment in the price target. Based on InvestingPro’s Fair Value analysis, the stock appears slightly undervalued at current levels, with additional insights and detailed valuation metrics available in the comprehensive Pro Research Report.
The analyst from BMO Capital noted the dual factors influencing the decision: "CHRW reported better-than-expected results as a strong performance in NAST helped to offset Forwarding headwinds. However, as we push back the timeline for a recovery of freight markets and contemplate a larger decline in Forwarding, we reduce our F2025 and F2026 EPS outlook by 3%."
C.H. Robinson’s stock performance will continue to be monitored by investors as the company navigates the shifting dynamics within the freight and logistics industry. The revised price target reflects BMO Capital’s current assessment of the company’s near-term financial prospects.
In other recent news, C.H. Robinson Worldwide reported its first-quarter earnings for 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $1.17, compared to the forecast of $1.07. However, the company’s revenue fell short, coming in at $4.05 billion against a projected $4.31 billion. Despite the revenue miss, the company achieved a 39% year-over-year increase in enterprise income from operations, attributed to productivity gains through AI integration and a 6.5% reduction in operating expenses. Evercore ISI analyst Jonathan Chappell revised the price target for C.H. Robinson shares to $110 from $119, maintaining an Outperform rating, acknowledging the company’s strong Q1 performance. Chappell also noted potential challenges ahead, with a forecasted decrease in second-quarter 2025 EPS to $1.01 and a revised full-year 2025 EPS estimate of $4.44. The Global Forwarding unit may face pressure from canceled sailings and declining ocean spot market rates. Nevertheless, Evercore ISI anticipates a robust 24% growth for the company next year, assuming a freight market rebound.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.