-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
After reviewing earnings, we lift our 12-month price target by $44 to $245 using a forward P/E of 44x our 2027 EPS view of $5.56 (raised $0.05), a large premium to historical averages, justified by exceptional EBIT and margin expansion amid AI initiatives. Additionally, after a strong start to the year, we increase our 2026 EPS view by $0.22 to $4.64. XPO's Q1 results were encouraging, with the company beating revenue and earnings expectations while achieving a record-low damage claims ratio below 0.2%. The company is executing well across multiple areas: improving service quality, gaining profitable market share, achieving above-market pricing growth, and driving significant cost efficiencies through proprietary AI technology. We expect this strong performance to continue, with healthy margin and earnings growth projected for both 2026 and 2027. However, XPO's valuation largely reflects these improvements in our view, trading at 98% above its five-year average forward P/E multiple of 24x. We maintain our Hold rating.