On Thursday, TD Cowen maintained a Hold rating on shares of C.H. Robinson Worldwide (NASDAQ: NASDAQ:CHRW) and increased the price target to $113 from $103. The adjustment follows the company's third-quarter earnings, which surpassed expectations, primarily due to Freight Forwarding (FF) performance, benefiting from elevated ocean rates and robust margins.
The firm acknowledged the third-quarter success but anticipates a normalization in Freight Forwarding in the fourth quarter as ocean rates are expected to decline and the peak season comes to an end. Moreover, the North American Surface Transportation (NAST) segment is projected to experience a seasonal downturn in the fourth quarter.
Despite the anticipated decline in NAST, the overall recovery of the trucking market is believed to be contingent on macroeconomic demand, which currently remains soft. However, C.H. Robinson's progress in reducing costs was noted as a positive factor that could help offset potential revenue weaknesses.
The firm concluded its evaluation by reiterating the Hold rating and adjusting the price target to $113, reflecting confidence in C.H. Robinson's ability to navigate the expected market conditions while acknowledging the challenges that lie ahead.
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