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Investing.com - TD Cowen has raised its price target on Expeditors International (NYSE:EXPD) to $111.00 from $107.00 while maintaining a Sell rating on the stock. The logistics giant, currently trading at $116.31 with a market capitalization of $15.9 billion, maintains a solid financial health score according to InvestingPro analysis.
The research firm cited Expeditors’ second-quarter performance, which exceeded both TD Cowen’s forecast and consensus expectations. The freight slowdown was less severe than anticipated, with tonnage in both ocean and air segments increasing by high single digits. With annual revenue of $11.06 billion and a P/E ratio of 19.2, the company demonstrates strong operational efficiency.
TD Cowen expressed concern that the pull-forward effect, driven by the tariff pause, is expected to diminish heading into the fall season. The Port of Los Angeles is projected to experience double-digit declines in activity.
The analyst note highlighted that these factors leave the traditional peak shipping season "extremely uncertain" for the logistics company.
Despite raising the price target by $4, TD Cowen maintained its Sell recommendation on Expeditors International stock, suggesting continued caution about the company’s near-term prospects.
In other recent news, Expeditors International has reported a 4% increase in revenue for the first quarter, with earnings per share (EPS) rising by 26% year-over-year to $1.47. This EPS figure exceeded both Benchmark’s estimate of $1.26 and the FactSet consensus of $1.37. The company’s performance was bolstered by higher airfreight revenues and increased ocean volumes, although there has been a significant drop in shipment volumes from China to the U.S. since the end of March. BofA Securities downgraded Expeditors International from Neutral to Underperform, citing rapidly falling containership rates, and adjusted the stock’s price target to $117.00 from $124.00. Despite the downgrade, the company’s Ocean Forwarding segment showed strong growth, with ocean volumes increasing by 8% year-over-year. Expeditors International also announced new employment agreements with three top executives, setting an annual base salary of $100,000 each, with provisions for incentive-based compensation. Benchmark analysts maintained a Hold rating on the stock, acknowledging the company’s effective management and cost control measures.
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