HUBG - TFI International upgraded as transport trends normalize

2023-04-10 08:32:19 ET

TFI International ( NYSE: TFII ) stock edged higher in premarket trading as Susquehanna shifted to a Positive rating from Neutral on Monday.

Equity analyst Bascome Majors previously downgraded the stock on what he viewed as undue optimism in January. While he indicated that he remains “cautious on trucking fundamentals into 2Q, with the ‘tale of two halves’ thesis evolving into a more realistic ‘we’ll get ‘em next year,’ Majors said there is room for selective optimism. As such, he moved his rating on TFI International ( TFI ) to a Buy equivalent alongside Hub Group ( HUBG ) and GXO Logistics ( GXO ).

“We expect less optimistic messaging from managements compared to last quarter, but don’t expect capitulating guidance cuts until July/August,” Majors told clients. “We remain below 2023E consensus and management guidance across the board for trucking/logistics names, and selectively constructive on deeper value names and global contract logistics provider GXO (high-visibility growth at a reasonable price).”

Forward Air ( FWRD ) was also Buy-rated by Majors.

Read more on the M&A chatter around TFI International .

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