EU and US could reach trade deal this weekend - Reuters
On Thursday, Evercore ISI analyst Jonathan Chappell revised the price target for C.H. Robinson Worldwide (NASDAQ:CHRW) shares, reducing it to $110 from the previous $119, while continuing to endorse the stock with an Outperform rating. Chappell highlighted that the company’s first quarter of 2025 earnings per share (EPS) of $1.17 surpassed both Evercore ISI’s projection and the consensus estimate of $1.05. With a market capitalization of $10.55 billion and a PEG ratio of 0.54, InvestingPro data suggests the stock is trading at an attractive valuation relative to its near-term earnings growth potential. The performance was primarily attributed to higher-than-expected earnings before interest and taxes (EBIT) from the North American Surface Transportation (NAST) unit, which benefited from corporate efficiencies.
The report noted that C.H. Robinson’s IT advancements and its leading workforce have been instrumental in gaining market share and improving capacity procurement efficiency. As a prominent player in the Air Freight & Logistics industry, the company operates with moderate debt levels and maintains a defensive beta of 0.87. However, the company is expected to face short-term challenges due to broader macroeconomic concerns, including trade policies and a potential downturn in demand and imports. For deeper insights into C.H. Robinson’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.
Despite the positive results, Evercore ISI forecasts a decrease in C.H. Robinson’s second-quarter 2025 EPS to $1.01 from the previously estimated $1.17, with a revised full-year 2025 forecast now standing at $4.44, down from $4.69. The analyst pointed to the likelihood of the Global Forwarding unit, especially the ocean spot market, being adversely affected by a significant number of canceled sailings and declining rates.
Looking ahead to the first half of 2026, the analyst has tempered his macroeconomic outlook, leading to a reduction in the 2026 EPS projection to $5.51 from $5.96. Despite the lower starting point and cautious view for the near future, Evercore ISI still anticipates a robust 24% growth for the next year, assuming a freight market rebound alongside C.H. Robinson’s efficient cost structure.
In conclusion, Chappell’s revised price target of $110 reflects a mix of company-specific strengths and broader economic challenges. Nevertheless, the Outperform rating is maintained, as the analyst continues to see C.H. Robinson as a growth-oriented and historically defensive stock in varying demand scenarios. The company’s commitment to shareholder returns is evidenced by its impressive 28-year streak of consecutive dividend increases, with a current yield of 2.78%. InvestingPro offers additional valuable insights, including 8 more ProTips and extensive financial metrics that can help investors make informed decisions about CHRW’s investment potential.
In other recent news, C.H. Robinson Worldwide Inc. reported its first-quarter earnings for 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $1.17, compared to a forecast of $1.07. However, the company’s revenue fell short, reporting $4.05 billion against a projected $4.31 billion. Despite this revenue miss, the company achieved a significant 39% year-over-year increase in enterprise income from operations. The firm also managed to reduce operating expenses by 6.5% year-over-year, highlighting its focus on cost management and productivity improvements through AI integration. C.H. Robinson’s strategic initiatives have been well-received, with the company expanding its gross margins by 140 basis points. Analysts have noted the company’s proactive approach to navigating market challenges, including freight market volatility and tariff uncertainties. The company’s liquidity remains strong, ending the quarter with $1.16 billion. Looking ahead, C.H. Robinson is focused on further productivity enhancements and market share growth, with personnel and SG&A expenses projected within specific ranges for the full year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.