TFI International (TFII) PT Lowered to $136 at BofA Securities

BofA Securities analyst Ken Hoexter lowered the price target on TFI International (NYSE: TFII) to $136.00 (from $145.00) while maintaining a Neutral rating.

The analyst comments "TFI International posted 4Q24 adjusted EPS of $1.19, down 30% year-year, below our $1.53 and Street’s $1.58 estimates. The miss was led by TFII’s Less-than-Truckload segment (35% of TFII’s revenue, $0.26/sh miss), particularly in US LTL (72% of TFII LTL revenue, $0.20/sh miss). US LTL adjusted operating ratio was 97.3%, a 630 bps deterioration year-year, and 510 bps worse than our target. We believe the miss highlights negative operating leverage from pricing pressure (TFII previously noted it continues to see pricing competition at the lower end of the LTL segment) as TFII’s service levels lag public peers (TFII’s US LTL claims ratio was 0.9%, deteriorating from 0.8% in 3Q24 vs ODFL’s <0.1% and XPO’s 0.2% in 4Q), as well as ongoing cost-control challenges. Separately, Ground Freight Pricing (GFP, legacy from its relationship with UPS Freight, which TFI purchased and renamed TForce Freight) revenue was $34 million, down 58% year-year, $19 mil below our target. Canadian LTL Operating Income was $26 million, down 8% year-year, $5 million below our target ($0.05/sh below)."

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