Citi has reiterated its "Buy" rating on CH Robinson Worldwide (CHRW), raising the target price to $134 from $125, following the company's Investor Day. The event highlighted CHRW's strategic focus on leveraging technology and operational efficiency to drive growth, with a 2026 operating income target of $900 million to $1 billion, surpassing Street estimates. Citi notes, "We see Robinson executing better than it has in the past, aided by a more favorable competitive dynamic," emphasizing the company's ability to capitalize on its scale and technological advancements.
CHRW's management outlined plans to enhance its market position by focusing on small and medium-sized businesses (SMBs) and key verticals like retail and automotive. The company aims to achieve 40% net operating margins in North American Surface Transportation (NAST) and 30% in Global Forwarding by 2026. Citi has adjusted its 2025/2026 EPS estimates to $5.00/$5.60, reflecting CHRW's progress in tech adoption and operating leverage.
The current price of CHRW is $117.58, with a 3.09% increase after market close.