TD Cowen Forecasts Strong Price Appreciation for XPO (NYSE:XPO) Stock

Key Points

• TD Cowen raised its price target on XPO to $224 (from $192) and maintained a "buy" rating, though that target implies only about a 2% upside from the current price.
• Q1 beat: XPO reported $1.01 EPS vs. $0.89 expected and $2.10B revenue vs. $2.04B, with management citing AI-driven productivity, pricing momentum and cost controls as drivers for improving margins.
• Institutional investors own about 97.73% of XPO and several large funds recently increased stakes, while analysts’ consensus is a "Moderate Buy" with an average price target of $198.52, below the current share price.

XPO (NYSE:XPO - Get Free Report) had its target price hoisted by equities researchers at TD Cowen from $192.00 to $224.00 in a note issued to investors on Friday. The firm currently has a "buy" rating on the transportation company's stock. TD Cowen's price target indicates a potential upside of 2.01% from the stock's current price.

XPO has been the topic of several other research reports. Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of XPO in a report on Friday, February 6th. Barclays reiterated an "overweight" rating and issued a $250.00 target price on shares of XPO in a research report on Friday. Wolfe Research lowered XPO from an "outperform" rating to a "peer perform" rating in a research note on Thursday, January 8th. Benchmark restated a "buy" rating on shares of XPO in a report on Tuesday, March 3rd. Finally, Zacks Research raised XPO from a "strong sell" rating to a "hold" rating in a research note on Thursday, February 12th. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, XPO currently has an average rating of "Moderate Buy" and a consensus price target of $198.52.

XPO Stock Up 1.3%

Shares of NYSE XPO opened at $219.58 on Friday. The company has a market cap of $25.78 billion, a price-to-earnings ratio of 82.86, a PEG ratio of 2.84 and a beta of 1.94. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 1.75. The stock has a 50-day moving average price of $204.05 and a two-hundred day moving average price of $167.28. XPO has a 12 month low of $103.71 and a 12 month high of $231.46.

XPO (NYSE:XPO - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The transportation company reported $1.01 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.89 by $0.12. The business had revenue of $2.10 billion during the quarter, compared to analysts' expectations of $2.04 billion. XPO had a net margin of 3.87% and a return on equity of 25.07%. The firm's quarterly revenue was up 7.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.73 EPS. As a group, analysts forecast that XPO will post 4.49 earnings per share for the current fiscal year.

Hedge Funds Weigh In On XPO

A number of hedge funds and other institutional investors have recently made changes to their positions in XPO. Durable Capital Partners LP increased its position in XPO by 79.3% during the 2nd quarter. Durable Capital Partners LP now owns 3,595,056 shares of the transportation company's stock valued at $454,020,000 after purchasing an additional 1,589,759 shares during the period. Norges Bank acquired a new stake in shares of XPO during the fourth quarter worth $204,304,000. Bessemer Group Inc. increased its position in shares of XPO by 228,761.0% during the fourth quarter. Bessemer Group Inc. now owns 1,121,419 shares of the transportation company's stock worth $152,411,000 after buying an additional 1,120,929 shares during the period. Invesco Ltd. raised its stake in XPO by 19.8% during the third quarter. Invesco Ltd. now owns 6,267,881 shares of the transportation company's stock worth $810,249,000 after buying an additional 1,036,434 shares during the last quarter. Finally, Capital World Investors raised its stake in XPO by 7.3% during the third quarter. Capital World Investors now owns 10,860,803 shares of the transportation company's stock worth $1,403,973,000 after buying an additional 735,450 shares during the last quarter. 97.73% of the stock is owned by institutional investors and hedge funds.

More XPO News

Here are the key news stories impacting XPO this week:

• Positive Sentiment: XPO beat expectations: Q1 adjusted EPS of $1.01 vs. $0.89 consensus and revenue of $2.10B vs. $2.04B, with year-over-year revenue growth and improved margins — a primary driver of the upside. XPO Reports First-Quarter 2026 Results
• Positive Sentiment: Earnings call highlighted margin strength and upbeat commentary from management on pricing and cost control, reinforcing confidence in profitability trends. Earnings Call Highlights Margin Strength
• Positive Sentiment: Management points to AI-driven productivity gains, pricing momentum and targeted capacity investments as drivers of future operating leverage and improved LTL performance. Those operational levers support upside to margins and returns. XPO Q1 Deep Dive
• Neutral Sentiment: CEO noted that higher oil prices have not meaningfully weakened demand — a supportive operational datapoint, though its impact on margins depends on fuel-hedging and pass-through. CEO: Higher Oil Prices Not Impacting Demand
• Negative Sentiment: XPO guided to a higher adjusted effective tax rate (23%–24%) for 2026 — this raises the company’s tax burden and will weigh on reported EPS compared with a lower prior rate. Tax-Rate Forecast and LTL Target

About XPO

XPO Logistics, Inc is a global provider of transportation and logistics services, offering a broad portfolio of solutions designed to optimize supply chains for businesses of all sizes. The company's operations span freight brokerage, less-than-truckload (LTL) shipping, full truckload transportation, last-mile delivery, contract logistics and global forwarding. XPO aims to leverage advanced technology and operational expertise to drive efficiency, visibility and reliability across end-to-end supply-chain networks.

In its freight brokerage segment, XPO connects shippers to a network of carriers through digital platforms that facilitate rate comparisons, booking, tracking and settlement.

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