Truist Securities has revised its price target for XPO, Inc (XPO, Financial), trimming it down to $125 from the earlier $130, while maintaining a Buy rating. This adjustment comes as part of a comprehensive report on the Transportation and Logistics sector. The analysis highlights a prolonged downturn in the freight industry, which has been experiencing recession-like conditions for over two and a half years.
Despite the challenging environment, the sector's overall tonnage index has shown stability, largely due to ongoing growth in U.S. GDP, retail sales, and e-commerce activities. These factors have ensured sustained demand for goods transportation. However, the market has faced significant pricing pressures, particularly within the truckload segment.
Going forward, Truist's adjustments reflect a more conservative outlook on the macroeconomic landscape, acknowledging the persistent issues in freight pricing despite stable tonnage and demand metrics through 2024 and into 2025.
