Benchmark Raises Price Target for XPO, Keeps Buy Rating

XPO, Inc. (NYSE:XPO) is one of the 12 Best Logistics Stocks to Buy According to Hedge Funds. On July 15, Benchmark increased its price target for XPO, Inc. (NYSE:XPO) from $130 to $140 while keeping a “Buy” rating.

Benchmark believes that XPO, Inc. (NYSE:XPO) is on track to achieve a 250-300 basis point sequential improvement in its less-than-truckload (LTL) operating ratio for Q2 2025.

However, the research firm made small downward changes to its estimates for XPO, Inc.’s (NYSE:XPO) results in the second quarter and beyond. This was attributed to tougher June comparisons, lower revenue from fuel surcharges, and weakness in the industrial economy.

Benchmark pointed out that XPO, Inc.’s (NYSE:XPO) focus on pricing over volume is a key factor driving operating ratio improvement.

The research firm is confident about the company’s long-term growth. Benchmark noted that XPO, Inc.’s (NYSE:XPO) terminal expansion, more capacity, and increased insourced line-haul miles will allow the company to see operating leverage when demand recovers.

XPO, Inc. (NYSE:XPO) is an American transportation and logistics company that specializes in asset-based less-than-truckload (LTL) freight transportation.

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Disclosure: None. This article is originally published at Insider Monkey.