C.H. Robinson Worldwide (CHRW) may face bull or bear sentiment as Q4 fiscal results support opposing narratives, as earnings beat expectations, due to lower costs and better margins, but net revenue missed expectations, Morgan Stanley said in a note Thursday.

Net revenues missed by 2%, slightly below consensus, which signals normalization in ocean freight and pressure in North America Surface Transportation from a tighter truck capacity late in Q4, the brokerage said.

Looking ahead, the company expects normalization in ocean and NAST pressure starting H1; however, Q1 may also face headwinds from FICA taxes, which could push earnings growth more heavily into H2, the note said.

Even if the company's AI-driven productivity efforts, which supported cost reductions, may offset some cycle pressures, the shares are trading at a higher multiple of 33x relative to the company's 2026 earnings guidance of $6 and $10 for 2026 and 2027, respectively, the note added.

Morgan Stanley maintained its underweight rating on the stock and raised its price target to $90 from $85.

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