Expeditors International of Washington's (EXPD) topline momentum is expected to continue, as key drivers of strength in airfreight activity persists while capacity constraints support rates, UBS said in a Tuesday research note.
The company also continues to point to a pipeline of new business and growth with new and existing customers as a tailwind in customs, according to the note.
Additionally, UBS said it expects the company to leverage AI to support productivity and support margin expansion on a multi-year basis. UBS added that the company took on a $25 million restructuring charge in Q2 that is slated to result in $50 million of savings, thus, raising the company's productivity potential.
UBS raised its 2026 net revenue growth estimate to 15% from 11% previously and increased its earnings per share expectation to $7.74 from $7.33 for the full year.
UBS raised its price target to $210 from $191 and maintained its buy rating on the company's stock.
Price: $178.53, Change: $-2.95, Percent Change: -1.63%