TD Cowen cuts CHRW stock price target to $118, maintains hold

Published 30/01/2025, 16:30
TD Cowen cuts CHRW stock price target to $118, maintains hold

Seidl also noted that C.H. Robinson is continuing to invest in technology initiatives aimed at fostering a more efficient operating model for the long term. These initiatives are in line with the company’s strategy presented during its investor day, emphasizing the importance of tech-led improvements in its business processes.The company’s commitment to a leaner operating model and technology investments are part of its strategy to navigate through an uncertain trucking market, which is not yet fully recovered. With a market capitalization of $12.06 billion and a return on equity of 30%, C.H. Robinson’s focus on enhancing productivity and controlling costs is expected to remain a priority as it moves forward. For deeper insights into C.H. Robinson’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.

C.H. Robinson did not provide specific financial guidance, but the company anticipates its selling, general and administrative (SG&A) expenses to be approximately $600 million at the midpoint and depreciation and amortization (D&A) costs to be around $100 million. This disclosure aligns with the company’s recent performance, where it has successfully enhanced its net revenue per employee in its North American Surface Transportation (NAST) segment for five consecutive quarters, due to effective cost management and productivity measures.

Seidl also noted that C.H. Robinson is continuing to invest in technology initiatives aimed at fostering a more efficient operating model for the long term. These initiatives are in line with the company’s strategy presented during its investor day, emphasizing the importance of tech-led improvements in its business processes.The company’s commitment to a leaner operating model and technology investments are part of its strategy to navigate through an uncertain trucking market, which is not yet fully recovered. With a market capitalization of $12.06 billion and a return on equity of 30%, C.H. Robinson’s focus on enhancing productivity and controlling costs is expected to remain a priority as it moves forward. For deeper insights into C.H. Robinson’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.

Seidl also noted that C.H. Robinson is continuing to invest in technology initiatives aimed at fostering a more efficient operating model for the long term. These initiatives are in line with the company’s strategy presented during its investor day, emphasizing the importance of tech-led improvements in its business processes.

The company’s commitment to a leaner operating model and technology investments are part of its strategy to navigate through an uncertain trucking market, which is not yet fully recovered. C.H. Robinson’s focus on enhancing productivity and controlling costs is expected to remain a priority as it moves forward.

In other recent news, C.H. Robinson Worldwide (NASDAQ:CHRW) Inc. has had its stock target reduced to $118 by Raymond (NSE:RYMD) James, which maintained an Outperform rating on the company. This adjustment was made amid operational changes within C.H. Robinson, following the appointment of CEO Bozeman in June 2023. Despite the challenges in its Forwarding business, Raymond James believes the market has accounted for these structural headwinds and finds the company’s valuation attractive.

Further, C.H. Robinson’s fourth-quarter results revealed earnings that surpassed analysts’ expectations, although revenue fell short. The company reported adjusted earnings per share at $1.21, beating the analyst consensus of $1.11, but posted a revenue of $4.2 billion, under the anticipated $4.43 billion. Despite this, the company saw profitability enhancements, with adjusted gross profits rising 10.7% to $684.6 million, primarily due to higher adjusted gross profit per transaction in truckload and ocean services.

In other developments, the company’s North American Surface Transportation segment saw revenues decline 6.6% year-over-year to $2.8 billion, while the Global Forwarding segment’s revenues increased 24.7% to $884 million. Looking ahead, C.H. Robinson projects its full-year effective tax rate for 2025 to be between 18% and 20%. These recent events highlight the company’s commitment to disciplined execution and leveraging industry-leading talent and technology to enhance logistics operations.

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