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.

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