XPO price target lowered to $133 from $136 at TD Cowen on economic trends

Investing.com - TD Cowen lowered its price target on XPO (NYSE:XPO) to $133 from $136 on Thursday while maintaining a Buy rating on the logistics company’s stock. Currently trading at $124.17 with a market capitalization of $14.56 billion, XPO maintains a GOOD financial health score according to InvestingPro data.

The research firm adjusted its model for XPO to reflect quarter-to-date trends, noting that the company continues to implement cost efficiency measures to counterbalance weakness in the industrial economy.

Despite XPO’s efforts to manage costs, TD Cowen expects second-half consensus estimates to move lower for the transportation and logistics provider.

The firm reduced its 2026 earnings per share estimate for XPO to $5.00 from the previous $5.15, applying a 26.5x multiple to arrive at the new $133 price target.

TD Cowen’s decision to maintain its Buy rating suggests continued confidence in XPO’s long-term prospects despite near-term challenges in the industrial sector.

In other recent news, XPO Logistics reported a decline in its May less-than-truckload (LTL) freight metrics, with tonnage per day decreasing by 5.7% compared to the previous year. This decline is attributed to a 5.0% drop in daily shipments and a 0.7% reduction in weight per shipment. Despite these figures, XPO’s management remains focused on initiatives aimed at growth and expansion. On the earnings front, XPO reported an adjusted EBITDA of $287 million and adjusted earnings per share of $0.73 for the first quarter, surpassing Wall Street expectations. Analysts from Stifel highlighted XPO’s ability to expand margins in a challenging freight market, maintaining a Buy rating but lowering the price target to $135 from $142.

BMO Capital also adjusted its price target for XPO to $145 from $165 while reiterating an Outperform rating. The firm expressed confidence in XPO’s strategic execution, believing the company could achieve its operating ratio target ahead of schedule. Benchmark analysts maintained their Buy rating and $130 price target, noting that XPO’s quarter-to-date LTL operating data aligns with their forecasts. These developments reflect analysts’ continued confidence in XPO’s strategic initiatives and its potential for long-term growth.

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