XPO stock price target raised to $140 from $130 at Benchmark
Investing.com
Published Jul 15, 2025 08:20AM ET
Investing.com - Benchmark raised its price target on XPO (NYSE:XPO) to $140.00 from $130.00 on Tuesday, while maintaining a Buy rating on the transportation and logistics company. The company, currently valued at $15.6 billion, has shown strong momentum with a 16.6% return over the past year. According to InvestingPro data, analysts maintain a bullish consensus with price targets ranging from $85 to $155.
The research firm indicated that XPO remains on track to achieve its guided 250-300 basis points sequential improvement in LTL (less-than-truckload) operating ratio for the second quarter, which would bring it to approximately 83.3%.
Benchmark made minor downward adjustments to its estimates for XPO's second quarter and beyond, citing tougher June comparisons, lower fuel surcharge revenue, and continued weakness in the industrial economy.
The firm highlighted XPO's focus on pricing over volume as a key driver for operating ratio improvement, which remains central to Benchmark's investment thesis for the company.
Benchmark expressed confidence in XPO's long-term earnings growth potential, noting that the company's terminal expansion, excess capacity, and increased insourced line-haul miles position it well to experience operating leverage when demand recovers.
In other recent news, XPO has been the focus of several analyst reports and evaluations. Citi downgraded XPO from Buy to Neutral, citing concerns over its valuation, while slightly raising the price target to $140.00. In contrast, Oppenheimer raised its price target for XPO to $150.00, maintaining an Outperform rating and highlighting XPO's potential for adjusted operating ratio improvement in 2025 despite economic challenges. TD Cowen lowered its price target to $133 from $136, maintaining a Buy rating, and noted potential downward adjustments in second-half estimates due to economic trends. BMO Capital reiterated its Outperform rating with a $140.00 price target, expressing confidence in XPO's strategic execution and its potential to improve operating ratios and cash flow through 2028-2029. Benchmark analysts also reiterated a Buy rating with a $130 price target, emphasizing XPO's focus on pricing over volume to enhance its operating ratio. These developments reflect varying perspectives on XPO's valuation and future performance amidst current economic conditions.
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