XPO stock price target lowered to $131 from $133 at TD Cowen

Published 31/07/2025, 23:10
XPO stock price target lowered to $131 from $133 at TD Cowen

Investing.com - TD Cowen has lowered its price target on XPO (NYSE:XPO) to $131.00 from $133.00 while maintaining a Buy rating on the stock. The transportation and logistics company, currently valued at $15.58 billion, trades at $120.27 per share. According to InvestingPro data, the stock appears overvalued at current levels, though analysts maintain optimistic targets ranging from $85 to $155.

The firm noted that XPO performed slightly better than both TD Cowen’s forecast and consensus expectations in the second quarter of 2025, attributing this outperformance to ongoing cost efficiencies within the company’s Less-Than-Truckload (LTL) segment and stronger results from its European operations. With annual revenue of $8 billion and EBITDA of $1.2 billion, XPO has demonstrated solid operational execution despite challenging market conditions.

TD Cowen reported that XPO has reduced its full-year LTL margin target due to expected mid-single-digit tonnage declines in that segment, though pricing in the LTL business remains firm. InvestingPro analysis reveals 13 analysts have recently revised their earnings expectations downward for the upcoming period, suggesting potential headwinds ahead. Get access to all 10+ InvestingPro Tips and comprehensive analysis for XPO with a subscription.

The slight reduction in price target from $133 to $131 reflects these adjusted expectations, despite the company’s overall performance exceeding forecasts in the most recent quarter.

The firm reiterated its Buy rating on XPO stock, suggesting continued confidence in the company’s prospects despite the modest price target reduction.

In other recent news, XPO has seen a series of analyst updates regarding its stock performance and future expectations. Benchmark increased its price target for XPO to $140, maintaining a Buy rating and highlighting the company’s progress in improving its less-than-truckload operating ratio. In contrast, Citi downgraded XPO from Buy to Neutral, citing concerns over the company’s high valuation and its potential impact on future earnings per share estimates. Meanwhile, Oppenheimer raised its price target for XPO to $150, expressing optimism about the company’s ability to improve its operating ratio despite challenging economic conditions. TD Cowen adjusted its price target to $133, reflecting current economic trends but maintained a Buy rating, noting XPO’s cost efficiency measures. BMO Capital reiterated its Outperform rating and $140 price target, emphasizing confidence in XPO’s strategic execution and performance since its transformation plan began in late 2022. These developments provide a mixed but largely positive outlook from analysts on XPO’s current and future performance.

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