Crispr Therapeutics shares tumble after significant earnings miss
Investing.com - Oppenheimer raised its price target on XPO (NYSE:XPO) to $150.00 from $126.00 on Monday, while maintaining an Outperform rating on the logistics company’s stock. According to InvestingPro data, XPO has demonstrated strong momentum with a 24% return over the past year, though current analysis suggests the stock may be trading above its Fair Value.
The research firm expects XPO to deliver adjusted operating ratio improvement year-over-year in the second quarter of 2025 and for the full year 2025, despite challenging macroeconomic headwinds.
Oppenheimer noted this implies outperformance within the North American LTL (less-than-truckload) industry, as consensus expectations for XPO’s closest peers show deterioration year-over-year this year.
The anticipated outperformance is being fueled by "idiosyncratic drivers," including significant pricing improvement due primarily to enhanced customer service, as well as operational efficiency initiatives such as line-haul insourcing and labor productivity.
Oppenheimer maintained all its quarterly and annual estimates through 2026, viewing XPO as undervalued and anticipating the company’s multiple will expand as it continues to deliver adjusted operating ratio outperformance.
In other recent news, XPO Logistics reported a decline in its less-than-truckload (LTL) freight metrics for May 2025, with tonnage per day decreasing by 5.7% compared to the previous year. This decline was due to a 5.0% drop in daily shipments and a 0.7% reduction in weight per shipment. Despite this, XPO’s first-quarter performance exceeded expectations, with an adjusted EBITDA of $287 million and adjusted earnings per share of $0.73, surpassing estimates by approximately 2% and 10%, respectively. Stifel analysts responded by lowering their price target for XPO to $135 from $142, while maintaining a Buy rating due to the company’s margin expansion efforts.
Additionally, TD Cowen adjusted its price target for XPO to $133 from $136, maintaining a Buy rating and noting the company’s cost efficiency measures amid industrial economic challenges. BMO Capital reiterated its Outperform rating and $140 price target, expressing confidence in XPO’s strategic execution and medium-term trajectory. Benchmark analysts also reaffirmed their Buy rating and $130 price target, emphasizing the importance of XPO’s focus on pricing over volume. These developments reflect a mix of challenges and strategic advancements for XPO Logistics in the current economic climate.
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