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On Tuesday, TD Cowen adjusted its stance on Expeditors International of Washington, Inc. (NYSE:EXPD), raising the price target on the company’s shares to $117.00, up from the previous target of $108.00. With the stock currently trading at $118.03 and analyst targets ranging from $86 to $131, TD Cowen maintained a Sell rating on the logistics giant. According to InvestingPro data, four analysts have recently revised their earnings expectations upward for the upcoming period.
The revision follows Expeditors International’s fourth-quarter earnings, which surpassed both consensus and TD Cowen’s own estimates. The company’s strong financial position is evident in its metrics, with InvestingPro analysis showing more cash than debt on its balance sheet and liquid assets exceeding short-term obligations. Analysts at TD Cowen highlighted that global disruptions have unexpectedly benefited the company, particularly towards the end of 2024. Factors such as tariffs, the de minimis rule, and ongoing disruptions in the Red Sea have contributed to a heightened level of uncertainty among shippers, which in turn has emphasized the value of Expeditors International’s services.
The firm notes that this shipper uncertainty is not only persisting but appears to be accelerating into the first quarter of 2025. This could potentially lead to further upsides in estimates for Expeditors International, which has demonstrated remarkable stability with 32 consecutive years of dividend payments. However, the impact of potential pull-forward activities, where customers move up their shipping schedules, remains an area of question for the company’s future performance. For deeper insights into Expeditors’ financial health and future prospects, investors can access comprehensive analysis through InvestingPro, which offers detailed research reports and additional ProTips.
The raise in price target to $117 is accompanied by a reiterated Sell rating, with TD Cowen analysts expressing caution despite the potential for Expeditors International to exceed estimates. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels, aligning with TD Cowen’s cautious stance. The firm’s commentary suggests that while there may be positive factors at play, including the company’s strong cash flows and low price volatility, there are still underlying concerns that justify the Sell rating on the stock.
In other recent news, Expeditors International of Washington Inc. has been in the spotlight due to a series of developments. Stifel analysts have raised their stock price target for the company to $118.12, maintaining a hold rating. The decision followed Expeditors International’s impressive fourth-quarter earnings per share (EPS) of $1.68, which exceeded both the consensus estimate of $1.43 and Stifel’s own estimate of $1.37.
The firm also highlighted the company’s ability to attract new business amidst market uncertainties, a trend expected to persist due to ongoing geopolitical unrest. However, Stifel acknowledged the challenges in projecting significant upside due to macroeconomic risks, despite the company’s successful capital stewardship.
In other recent developments, Expeditors International has disclosed insights into its operational performance and market expectations, according to a filing with the Securities and Exchange Commission. The company noted its increased shipment volumes per person in the third quarter, achieved through leveraging technology and optimizing processes. Looking ahead, it anticipates continued tightness in air supply throughout 2025, particularly in specific lanes like Vietnam. The company also discussed potential changes to de minimis laws, which could open additional business opportunities. These are among the recent developments concerning Expeditors International.
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