The Globe and Mail reports in its Thursday, July 10, edition that Citi analyst Ariel Rosa is keeping his "buy" ranking for TFI International intact. The Globe's David Leeder writes in the Eye On Equities column that Mr. Rosa boosted his share target to $108 from $107 (all figures U.S.) Analysts on average target the shares at $111.12. Mr. Rosa says in a note: "With TFI International we acknowledge larger structural concerns given its unionized U.S. LTL workforce which poses an embedded obstacle to margins. Nevertheless, as with SAIA [Inc.], we view estimates as conservative, while we also note strong free cash flow generation from its other businesses, many of which are very well managed, as well as a proactive CEO with a track record of fixing problems and driving shareholder returns. In the case of both SAIA and TFI, the companies have strong long-term track records of adapting to market conditions to drive share price performance. While cyclical headwinds present near-term obstacles to this objective, we believe investors would be well-served by adding exposure to these recent underperformers."
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