C.H. Robinson Worldwide (CHRW) hosted its first Investor Day in seven years, setting ambitious targets for 2026, including operating income of $900 million to $1 billion and mid-cycle operating margins in the mid-30% range. BofA Global Research has reiterated its "Buy" rating, raising the price objective to $130 from $123, based on a 25.5x multiple of 2025 estimated EPS, which has been increased to $5.10 from $4.90. The report highlights CHRW's focus on profitable share gains and AI-enabled productivity, with CEO Dave Bozeman emphasizing the company's strategy to leverage scale, data, and technology to enhance value in the fragmented U.S. brokerage market.
Key drivers include a projected 0-5% annual market volume growth between 2025-2026 and significant gains from market share, gross margin expansion, and cost reductions. The company is also capitalizing on secular tailwinds from increased brokerage penetration in the $400 billion for-hire trucking market. "CHRW is leveraging Gen AI to add material value and drive margin expansion," noted Arun Rajan, Chief Strategy & Innovation Officer, underscoring the company's commitment to digital transformation.
C.H. Robinson's stock was trading at $113.18, down 0.77% as of December 13, 2024, at 9:40 AM.