Oppenheimer Reaffirms Buy Rating on XPO Despite Q2 Profit Drop and LTL Decline

Core Viewpoint - XPO, Inc. is recognized as one of the best freight stocks to invest in, despite mixed performance in Q2 and a decline in August, with analysts maintaining a Buy rating on the stock [1][2]. Financial Performance - The company's net income for Q2 2025 decreased by 29% year-over-year, amounting to $106 million, while revenue remained stable at $2.08 billion compared to Q2 2024, indicating rising operational costs [2]. - The North American LTL segment experienced a 2.5% decline in year-over-year revenue, contrasting with a 4.1% growth in the European Transportation segment during the same quarter [2]. Recent Developments - On September 3, 2025, XPO reported a 4.7% decline in LTL tonnage per day in its North American segment compared to August of the previous year [3]. - Oppenheimer reaffirmed a Buy rating for XPO on September 4, 2025, setting a price target of $150, reflecting confidence in the company's growth prospects [3]. Company Overview - XPO, Inc., based in Connecticut, is a leading provider of less-than-truckload (LTL) freight transportation services in North America, focusing on technology-driven solutions to enhance operational efficiency [4].