What Happened?
Shares of freight delivery company XPO (NYSE: XPO) jumped 3.6% in the morning session after an analyst at Bank of America Securities maintained a 'Buy' rating on the stock and increased the price target. The analyst, Ken Hoexter, lifted the price target from $151.00 to $158.00. This action signaled increased confidence in the company's future performance from the financial institution. Such positive commentary from analysts often encourages investors and can lead to a stock price increase, as it suggests a greater potential for growth than previously estimated. The new price target represented a possible upside of over 14% based on the stock's price at the time of the report.
After the initial pop the shares cooled down to $140.45, up 3.8% from previous close.
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What Is The Market Telling Us
XPO’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 6.3% on the news that the company reported a decline in key operating metrics for its North American Less-Than-Truckload (LTL) business for November 2025. The freight transportation provider disclosed that LTL tonnage per day fell 5.4% compared to the same month in the previous year. This drop was a result of two factors: a 2.2% decrease in the number of shipments per day and a 3.2% decrease in the weight of each shipment. This report signaled a continuing trend of slowing business, as it followed a similar 3.8% year-over-year decline in tonnage per day for October 2025. The weaker volumes suggested a potential impact from a contracting manufacturing sector.
XPO is up 6% since the beginning of the year, but at $140.45 per share, it is still trading 11.2% below its 52-week high of $158.20 from December 2024. Investors who bought $1,000 worth of XPO’s shares 5 years ago would now be looking at an investment worth $1,207.
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