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Investing.com - Stifel raised its price target on Expeditors International (NYSE:EXPD) to $118.00 from $115.00 while maintaining a Hold rating following the company’s second-quarter earnings report. According to InvestingPro data, the company maintains a GOOD financial health score, with analyst targets ranging from $86 to $128.
The freight forwarding company reported second-quarter earnings per share of $1.34, exceeding the consensus estimate of $1.25 and Stifel’s projection of $1.21. The company’s strong performance is backed by solid fundamentals, including a healthy balance sheet with more cash than debt and a 28-year track record of consecutive dividend increases.
Expeditors demonstrated consistent execution during a volatile period, with growth across its Airfreight, Ocean Freight, and Customs segments, driven by factors including pull-forward demand, supply chain realignment, and flight to quality, according to Stifel.
The quarter also marked a leadership transition as Dan Wall assumed the CEO position early in the period, which Stifel characterized as aligned with the company’s measured strategy, noting Wall brings incremental experience while maintaining a long history with Expeditors’ company culture.
Despite the strong performance, Stifel remains neutral on the stock, citing uncertainty in the international trade climate and challenges in identifying clear paths toward industry growth, positive mix changes, and market share gains, particularly when considered against Expeditors’ resilient valuation.
In other recent news, Expeditors International has reported strong financial results, with a notable 26% year-over-year increase in earnings per share (EPS) to $1.47 for the first quarter of 2025. This performance surpassed both Benchmark’s estimate of $1.26 and the FactSet consensus of $1.37. The company’s revenue also grew by 4%, driven by increased airfreight revenues and ocean volumes. Despite these positive results, Expeditors faces challenges due to a significant drop in shipment volumes from China to the U.S. since March.
In response to these developments, BofA Securities downgraded Expeditors from Neutral to Underperform, citing rapidly falling containership rates. However, BofA adjusted its price target for the stock to $117.00 from $124.00. TD Cowen also raised its price target to $111.00, maintaining a Sell rating, noting that the company’s second-quarter performance exceeded expectations. Additionally, Expeditors has entered into new executive agreements with three top executives, setting an annual base salary of $100,000 for each. These agreements include provisions for incentive-based compensation, as determined by the Board of Directors or its Compensation Committee.
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