RBC Capital Markets lowered its price target on TFI International Inc. (TFII.TO, TFII) to US$160 from US$167.
Analyst Walter Spracklin maintained an Outperform rating on shares of the Canadian transport and logistics company.
"TFII posted weaker-than-expected Q3 results and guided down fairly materially," Spracklin said in a note to clients.
"That said, we point to: 1) the now reset bar on expectations; 2) the strong FCF generation that has led to a pristine balance sheet and significant optionality for M&A / opportunistic buybacks; 3) meaningful upside in an improving macro stemming from strong operating leverage; and 4) a still cheap valuation, even on reset numbers," the analyst said.
"Accordingly, we reiterate our OP and flag TFII as a very attractive investment opportunity, especially for those constructive on a macro inflection."
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
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