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Investing.com - Stifel lowered its price target on Expeditors International (NYSE:EXPD) to $114.00 from $118.00 on Friday, while maintaining a Hold rating on the logistics company’s stock. According to InvestingPro data, the company currently trades at $116.22, with a market capitalization of $15.8 billion and maintains a strong financial health score rated as "GOOD."
The research firm acknowledged Expeditors as a strong operator with effective people and processes, which has contributed to its profitability compared to industry peers.
Stifel noted that Expeditors has historically been viewed as an IT leader, making incremental updates to its legacy platform while competitors struggled with large-scale software overhauls, allowing the company to gain market share.
The firm cautioned that this approach might eventually leave Expeditors facing a "generational technology gap" as competitors optimize new cutting-edge platforms and services.
While Stifel identified short-term growth opportunities in Expeditors’ market share focus, particularly in Europe, it highlighted potential long-term challenges including increased competition, market volatility, rapidly changing technology, and shifting global supply chains.
In other recent news, Expeditors International reported a notable second-quarter performance, with revenue increasing by 9% and operating income rising by 11%, showcasing improved profitability amid volatile freight conditions. This strong performance led to several analyst actions, including Freedom Capital Markets upgrading the company’s stock rating from Sell to Hold, and raising the price target to $119.00. Additionally, Expeditors’ earnings per share of $1.34 surpassed both Benchmark’s estimate of $1.15 and the FactSet consensus of $1.25, reflecting an 8% year-over-year increase.
Stifel also adjusted its outlook, raising the price target to $118.00 while maintaining a Hold rating, citing the company’s earnings surpassing expectations. TD Cowen raised its price target to $111.00, noting that the freight slowdown was less severe than expected, with increases in tonnage for both ocean and air segments. Truist Securities reiterated its Hold rating and $110.00 price target after a discussion with the company’s management, although they noted limited forward visibility. Benchmark maintained its Hold rating as well, acknowledging the company’s better-than-expected earnings report. These developments highlight the financial community’s varied perspectives on Expeditors International following its recent earnings announcement.
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