Crispr Therapeutics shares tumble after significant earnings miss
Investing.com - Citi downgraded XPO (NYSE:XPO) from Buy to Neutral on Wednesday, while raising its price target slightly to $140.00 from $137.00. The transportation company, currently valued at $15.58 billion, has shown significant volatility with a beta of 1.75.
The downgrade reflects Citi’s view that XPO’s "elevated valuation could limit further upside without a meaningful acceleration in 2026 EPS estimates," according to the research note. This assessment aligns with InvestingPro data showing XPO trading at a P/E ratio of 39.56, suggesting a relatively high earnings multiple.
Citi acknowledged that XPO "has been executing well relative to peers" and has unlocked "structural operating improvements" expected to persist when macroeconomic conditions eventually change.
The firm noted these improvements have driven XPO’s "strong outperformance" in the transportation sector.
Citi highlighted a significant market shift, pointing out that XPO is now trading at a premium to peers Old Dominion Freight (NASDAQ:ODFL) Line and Saia (NASDAQ:SAIA) "for the first time in history" among non-unionized top quartile less-than-truckload carriers.
In other recent news, XPO Logistics has been the focus of several analyst assessments and operational updates. Oppenheimer raised its price target for XPO to $150, maintaining an Outperform rating, citing expected improvements in the company’s adjusted operating ratio through 2025, driven by pricing enhancements and operational efficiencies. Meanwhile, TD Cowen adjusted its price target to $133 from $136, reflecting economic trends and projecting a slight decrease in second-half earnings estimates, although the firm continues to hold a Buy rating. BMO Capital reiterated its Outperform rating with a $140 price target, expressing confidence in XPO’s strategic execution and long-term valuation potential. Benchmark analysts also maintained a Buy rating with a $130 target, highlighting the company’s focus on pricing strategy to improve its operating ratio.
Additionally, XPO reported a decline in its less-than-truckload (LTL) freight metrics for May 2025, with a 5.7% decrease in daily tonnage compared to the previous year, attributed to fewer daily shipments and reduced weight per shipment. Despite these challenges, XPO continues to implement cost and revenue initiatives to support growth. The company has cautioned that preliminary figures may not fully represent future performance, emphasizing the potential for variability due to economic and regulatory factors. These developments indicate ongoing adjustments in XPO’s strategies amidst broader economic conditions.
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