Expeditors International of Washington (EXPD) delivered a significant Q2 beat driven by airfreight, though favorable conditions may prove short-lived, Morgan Stanley said Tuesday in a report.

Airfreight outperformed on tighter Middle East cargo capacity, sustained artificial AI-related freight demand and a rebound in North Asia e-commerce, the report said.

Still, the quarter brought "even more disruption" rather than improved visibility into normalized earnings, partly as ocean-freight and custom-brokerage results missed estimates, Morgan Stanley said.

Management announced its first investor day in 11 years, and given Expeditors' "relatively 'under the radar' approach to public communications, this event could mark an inflection in narrative and communications strategy that could influence the stock," the report said.

Morgan Stanley raised its price target on Expeditors stock $100 from $95 and maintained its underweight rating.

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