Analyst Ken Hoexter of Bank of America Securities reiterated a Buy rating on XPO (XPO – Research Report), boosting the price target to $170.00.
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Ken Hoexter has given his Buy rating due to a combination of factors highlighting XPO’s strong performance and growth potential. XPO has shown impressive progress in its Less-than-Truckload (LTL) segment by closing the margin gap with its leading competitor, Old Dominion. The company’s focus on service improvement, price discipline, and expanding premium services has resulted in an enhanced operating ratio and notable yield growth, which are expected to continue improving throughout 2025.
Additionally, XPO’s recent financial results exceeded expectations, with adjusted earnings per share surpassing both internal and market estimates. The company’s strategic initiatives to reduce outsourced linehaul miles and its plans to accelerate cash flow and decrease leverage also contribute to the positive outlook. These factors, coupled with a favorable valuation and anticipated EPS growth, have led Ken Hoexter to increase the price objective to $170 and maintain a Buy rating, positioning XPO as a top pick.
In another report released today, Barclays also maintained a Buy rating on the stock with a $165.00 price target.
XPO’s price has also changed moderately for the past six months – from $111.080 to $146.910, which is a 32.26% increase.