XPO stock price target lowered to $134 by Evercore ISI on demand concerns

Published 31/07/2025, 23:10
XPO stock price target lowered to $134 by Evercore ISI on demand concerns

Investing.com - Evercore ISI has lowered its price target on XPO (NYSE:XPO) to $134.00 from $135.00 while maintaining an Outperform rating on the stock. According to InvestingPro data, XPO currently trades at a P/E ratio of 36, with analyst targets ranging from $85 to $155, reflecting mixed sentiment about the $15.6 billion logistics company.

The adjustment follows XPO’s second-quarter 2025 results, which showed adjusted earnings per share of $1.05, exceeding Evercore’s estimate of $1.00 and the average Street forecast of $0.99. Despite the earnings beat, XPO shares fell more than 9% as investors reacted to ongoing demand challenges. InvestingPro data reveals that 13 analysts have recently revised their earnings expectations downward for the upcoming period, suggesting continued caution about near-term performance.

XPO affirmed its full-year margin guidance of 100 basis points improvement despite facing continued headwinds in freight demand, with tonnage declines exceeding expectations. The company also effectively raised its third-quarter guidance by indicating that its operating ratio should be roughly in-line with second-quarter results. The company maintains a solid gross profit margin of 17.5% and has demonstrated profitability over the last twelve months, with revenue reaching $8 billion.Get deeper insights into XPO’s financial health and access exclusive analysis with InvestingPro, which offers comprehensive research reports and additional ProTips for informed investment decisions.

Evercore attributed the stock sell-off to multiple factors, including a positioning unwind as XPO had been viewed as unlikely to miss estimates, renewed concerns about the less-than-truckload (LTL) sector facing volume declines, and doubts about XPO’s ability to maintain its relative performance as demand remains weak.

Based on these developments, Evercore raised its full-year 2025 earnings per share estimate to $3.64 from $3.58 due to the second-quarter outperformance, but lowered its 2026 forecast to $4.33 from $4.52, reflecting longer-term concerns about industry conditions.

In other recent news, XPO’s financial outlook has seen varied assessments from several analyst firms. Oppenheimer has raised its price target for XPO to $150, maintaining an Outperform rating, citing expected improvements in the company’s adjusted operating ratio for the second quarter and the full year of 2025. Benchmark also increased its price target to $140, highlighting XPO’s progress in enhancing its less-than-truckload operating ratio. Meanwhile, TD Cowen adjusted its price target slightly downward to $131, acknowledging XPO’s better-than-expected performance in the second quarter of 2025, driven by cost efficiencies and strong European operations. Another adjustment from TD Cowen lowered the target to $133, reflecting current economic trends but still maintaining a Buy rating. Citi, however, downgraded XPO to Neutral, despite a slight increase in its price target to $140, due to concerns over the company’s elevated valuation and its potential impact on future earnings growth. These recent developments indicate a mixed but generally optimistic outlook for XPO among analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.