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Investing.com - Raymond James raised the price target on C.H. Robinson Worldwide (NASDAQ:CHRW) to $161.00 from $158.00 on Thursday, while maintaining an Outperform rating on the stock. The new target represents significant upside from the current price of $129.38, with shares already showing strong momentum after gaining 46.7% over the past six months, according to InvestingPro data.
The investment firm cited "meaningful operational transformation" underway at the company, specifically pointing to lean and AI initiatives implemented since CEO Bozeman joined in June 2023. These changes are expected to revitalize operating margins that have been declining for years. Despite weak gross profit margins of 8.21%, the company maintains a "Good" overall financial health score of 2.72 out of 5 on InvestingPro’s assessment framework.
Raymond James noted industry tailwinds that favor C.H. Robinson, including continued broker penetration and consolidation in the freight brokerage industry, which supports the company’s position as the largest domestic freight broker. InvestingPro identifies CHRW as a prominent player in the Air Freight & Logistics industry, with the company generating $17.01 billion in revenue over the last twelve months.
The firm acknowledged that C.H. Robinson’s Forwarding business, representing 28% of gross profit in 2024, faces structural headwinds from an oversupplied ocean market, but believes this challenge is already reflected in the stock price.
With shares trading at 20 times Raymond James’ 2027 EPS estimate, the firm sees a "compelling risk/reward setup" for C.H. Robinson stock. Currently trading at a P/E ratio of 29.79, CHRW has maintained dividend payments for 29 consecutive years with a current yield of 1.92%. The company’s strong financial position is further supported by its Piotroski Score of 7, suggesting solid fundamental strength.
In other recent news, C.H. Robinson Worldwide Inc. 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 was $4.1 billion, falling short of the anticipated $4.23 billion. In related developments, BMO Capital adjusted its price target for C.H. Robinson, raising it from $135 to $140, while maintaining a Market Perform rating. The firm attributed this adjustment to a timing shift in SG&A costs to the fourth quarter of 2025, which led to better-than-expected results for the third quarter. Despite these developments, BMO Capital noted that its full-year 2025 estimate for the company remains largely unchanged. These updates provide investors with key insights into the company’s recent performance and future expectations.
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