2023-05-08 08:28:01 ET
Bank of America raised its rating on XPO ( NYSE: XPO ) to Neutral from Underperform on Monday following last week's earnings report.
Analyst Ken Hoexter and team noted big changes are underfoot at XPO with the company shifting to a pure play LTL carrier following the spin its Brokerage/Last Mile segment and sale of the European Transport segment. The moves are seen adding value given the benefits to LTL from e-commerce growth and XPO's focus to improve operations.
"However, its efforts on unlocking value is balanced by a decelerating freight environment for LTL carriers," warned Hoexter
BofA lifted its price objective on XPO to $50 from $33 off a 19.5X multiple of the 2023 EPS estimate. The firm lowered its 2023 EPS estimate to $2.55 from $2.75 and now sees 2024 EPS of $3.10 vs. $3.20 prior.
Shares of XPO rallied 1.77% in premarket action on Monday to reach $48.75.
More on XPO:
- XPO's New COO Sweetens The Bull Case
- Read more breakdowns on XPO from Seeking Alpha analysts
- Check out the earnings call transcript
- Check out the valuation metrics
- View the growth metrics
- See the financial and valuation comparisons to sector peers
- Dig into the Seeking Alpha Quant Rating
For further details see:
XPO breaks free of prior bear rating at Bank of America