UPDATE: Credit Suisse Starts TFI International (TFII) at Outperform

(Updated - June 27, 2022 4:27 PM EDT)

Credit Suisse analyst Ariel Rosa initiates coverage on TFI International (NYSE: TFII) with a Outperform rating and a price target of $103.00.

The analyst comments "We initiate coverage of TFI International with an Outperform rating and a $103 target price. TFI operates as a transportation and logistics holding company with approximately 80 operating businesses across 4 segments: Less-than-Truckload (44% of revenue, 44% of operating income), Truckload (27% of revenue, 28% of operating income), Logistics (23% of revenue, 17% of operating income), and Package & Courier (7% of revenue, 17% of operating income). TFII has delivered remarkable long-term performance, with its stock price compounding at an annual rate of over 20% in the past decade, even inclusive of this year’s decline of roughly 30%. This strong performance has been driven by the company’s talent for rolling up businesses and improving their financial performance. We see this as a model that can continue to be replicated to drive shareholder returns in the years ahead. With many transportation stocks trading at discounted valuations, including TFI’s own stock at only 11.6x consensus forward EPS estimates, we believe that it could capitalize on the current moment with a number of highly accretive acquisitions. From an operations standpoint, the UPS Freight acquisition is only one year in, suggesting that TFI has opportunities to continue to improve operating results in its U.S. LTL business, even in the face of a weak freight market, possibly blunting any negative pressure on volume and rates."

For an analyst ratings summary and ratings history on TFI International click here. For more ratings news on TFI International click here.

Shares of TFI International closed at $78.59 yesterday.

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