- Raymond James analyst Patrick Tyler Brown lowered the price target for XPO Logistics Inc. XPO to $70 (an upside of 46%) from $90 while maintaining the Outperform rating on the shares.
- The analyst states that the sharp decline in truck spot rates has continued to dominate headlines — as per data, it is estimated that current truck spot rates per mile have fallen all the way back to “peak” 2014 levels.
- Brown believes that the truck spot market has been at the epicenter of a well-documented shift from goods to services spending — all while truckload operating costs have increased starkly.
- The analyst states that following the sale of the intermodal business at the end of Q1, he is pleased to see progress towards the spin-off of the brokerage business.
- Brown believes separating brokerage and LTL will simplify both stories, helping drive multiple expansions looking towards 2023.
- Price Action: XPO shares are trading higher by 2.61% at $48.01 on the last check Friday.
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