TFI International (NYSE: NYSE:TFII) saw its price target increased to $184 from $176 by TD Cowen, a leading brokerage firm, which maintained its Buy rating for the company after its second-quarter earnings that exceeded expectations and confirmed that it would retain its full-year earnings guidance.
The firm's US less-than-truckload (LTL) business encountered some economic challenges, which slowed margin improvements. Despite these hurdles, management at TFI International remains focused on expanding its LTL and logistics footprint through 2025.
This strategy is expected to be supported by a reduction in leverage over the upcoming quarters, pointed out an analyst from TD Cowen.
The analyst said, "TFII came in above estimates for 2Q and kept full-year earnings guidance intact."
The analyst further pointed out the reasons behind the optimistic outlook, noting, "Looking forward, mgmt still seeks to expand its footprint in LTL and/or logistics into '25 as leverage works its way down over the coming quarters."
The TD Cown report published on Monday concluded with the analyst reiterating their confidence in the company's prospects, saying, "We roll our model forward and move our PT to $184. Reiterate Buy." This statement reaffirms the positive stance on TFI International's stock, suggesting that the firm's recent performance and strategic initiatives are well-aligned with investor expectations.
At the same time, RBC Capital Markets has raised its target for TFI International to $171, citing the company's strong Q2 performance, robust free cash flow, and potential for future acquisitions.
Simultaneously, TFI International's stock price target was lowered to Cdn$140.00 from Cdn$145.00 by BMO Capital Markets, reflecting challenges in the freight market affecting the company's first-quarter performance. BMO Capital also adjusted its earnings per share forecasts, predicting $6.77 for fiscal year 2024 and $8.77 for 2025.
InvestingPro Insights
TFI International's (NYSE:TFII) recent performance has caught the attention of investors, with a market capitalization of $3.4 billion and a P/E ratio that stands at 27.72, reflecting the company's solid earnings. The company's commitment to maintaining dividend payments, with a history of 23 consecutive years, is notable for those looking for consistent income, and the dividend yield currently stands at 1.04%. TFI International's moderate level of debt and its strategic focus on expanding its less-than-truckload (LTL) and logistics operations suggest a balance between growth and financial prudence.
Investors should note that TFI International trades at a high Price / Book multiple of 4.94, indicating a premium market valuation relative to its book value. However, this is balanced by the company's profitability over the last twelve months and the positive revenue growth of 2.23% during the same period. Additionally, the company's strong return over the last decade, coupled with a robust return over the last five years, underscores its long-term performance.
For those seeking more in-depth analysis and additional metrics, there are over 7 InvestingPro Tips available for TFI International, which can be accessed through the InvestingPro platform. Investors interested in leveraging these insights can use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing an opportunity to make more informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.