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Investing.com - UBS raised its price target on C.H. Robinson Worldwide (NASDAQ:CHRW) to $177.00 from $166.00 on Thursday, while maintaining a Buy rating following the company’s better-than-expected third-quarter results. The new target represents significant upside potential from the current price of $129.38, though InvestingPro data indicates the stock may be trading above its Fair Value.
The freight transportation company reported earnings of $1.40 per share, exceeding consensus estimates of $1.30 and UBS’s projection of $1.32 per share. The outperformance was primarily driven by North American Surface Transportation (NAST) and Forwarding segments, which delivered $7 million and $5 million in earnings before interest and taxes above expectations, respectively.
C.H. Robinson achieved 3.0% year-over-year truckload volume growth despite challenging market conditions, with the Cass Shipments index down 7.2% year-over-year in the third quarter. The company also improved its NAST gross margin percentage to 15.0%, representing a 20 basis point improvement compared to the second quarter and a 70 basis point increase year-over-year. This margin improvement is notable as InvestingPro data shows the company has struggled with weak gross profit margins, currently at 8.21% for the last twelve months.
The company reduced its headcount by 2.3% in the third quarter compared to the second quarter, contributing to operational efficiency. UBS noted this reduction came against their model’s expectation of flat headcount.
UBS expects a positive market response to the strong quarterly performance and C.H. Robinson’s increased 2026 earnings before interest and taxes target, though the firm believes the company’s fourth-quarter cost guidance may be somewhat conservative.
In other recent news, C.H. Robinson Worldwide reported its third-quarter earnings for 2025, showing an earnings per share (EPS) of $1.40, which exceeded the forecasted $1.30. However, the company’s revenue of $4.1 billion did not meet the anticipated $4.23 billion. In terms of analyst activity, Raymond James raised its price target for C.H. Robinson to $161 from $158, maintaining an Outperform rating. The firm attributed this adjustment to significant operational changes, including lean and AI initiatives introduced by CEO Bozeman. BMO Capital also increased its price target for the company, moving it to $140 from $135, while keeping a Market Perform rating. This adjustment was influenced by a shift in SG&A costs to the fourth quarter of 2025, resulting in better-than-expected third-quarter results. These developments highlight ongoing strategic shifts and analyst adjustments concerning C.H. Robinson.
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