XPO (XPO) Reiterated at Buy by Benchmark; Demand Trends Improving

Benchmark analyst Christopher Kuhn reiterated a Buy rating and $220.00 price target on XPO (NYSE: XPO).

The analyst commented, "We are increasing our estimates and maintaining our $220 price target ahead of XPO’s 1Q report in the coming weeks. XPO remains one of our highest-conviction ideas for 2026 and continues to feature prominently on Benchmark’s Best Ideas list. The company’s QTD LTL operating data for 1Q are tracking ahead of our –0.6% volume growth forecast, although March remains the most important month of the quarter. While XPO does not disclose QTD revenue per hundredweight exfuel, our conversations with the company suggest trends are in-line with our +4.5% y/y estimate—representing another sequential improvement, as is revenue per shipment ex-fuel. January tonnage was flat y/y, which is above normal seasonality and notable given a 3-point weather impact. February tonnage increased 0.2% y/y, which was slightly above normal seasonality despite also being impacted by weather - .5% to 1%. Demand trends appear to be improving, with industrial shipments—roughly 65%+ of XPO’s overall volume—showing signs of momentum, though geopolitical risks remain a consideration. Importantly, XPO’s QTD volume continues to track ahead of our estimate for ODFL, supported by growth in local account business. We still expect ODFL to benefit from the same positive industrial backdrop. A core element of our thesis—XPO’s emphasis on price over volume to drive y/y OR improvement—remains intact this quarter."

For an analyst ratings summary and ratings history on XPO click here. For more ratings news on XPO click here.

Shares of XPO closed at $186.40 yesterday.

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