Tariffs Will Delay TL Demand Rebound for C.H. Robinson: Expert Analysis

C.H. Robinson Worldwide's net revenue is primarily driven by domestic freight brokerage, accounting for 60% of its revenue. The company also operates a large air and ocean forwarding division, which has grown organically and through acquisitions. The economic fallout from tariffs is likely to delay the rebound in TL demand for the company.

Jefferies has lifted its price target for C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) from $95 to $100 while maintaining a "Hold" rating. The research firm's decision comes amidst a broader assessment of the transportation and logistics sector, which has shown signs of recovery following early-year lows. C.H. Robinson Worldwide specializes in freight, logistics, and supply chain solutions, offering services such as truckload, less than truckload, air freight, and ocean transportation [1].

The company's stock is currently trading at about 22 times earnings and 16 times EBITDA for 2025, which are 6% and 12% above the company’s historical averages, respectively. Jefferies noted that there is limited room for the stock price to rise from multiple expansion unless freight market fundamentals considerably exceed current market expectations. The firm also highlighted that stock valuations for trucking and brokerage companies have bounced back from early-year lows, reflecting generally strong expectations for a recovery in the sector over the next year [1].

C.H. Robinson's net revenue is primarily driven by domestic freight brokerage, accounting for 60% of its revenue. The company also operates a large air and ocean forwarding division, which has grown organically and through acquisitions. The economic fallout from tariffs is likely to delay the rebound in TL demand for the company [3].

Wall Street expects a year-over-year increase in earnings on lower revenues for C.H. Robinson Worldwide when it reports results for the quarter ended June 2025. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. The Zacks Consensus Estimate for the quarter is $1.17 per share, representing a year-over-year change of +1.7%. Revenues are expected to be $4.22 billion, down 5.9% from the year-ago quarter [2].

The Earnings ESP for C.H. Robinson is -2.27%, suggesting that analysts have recently become bearish on the company's earnings prospects. The stock currently carries a Zacks Rank of #3, making it difficult to conclusively predict that C.H. Robinson will beat the consensus EPS estimate. Over the last four quarters, the company has beaten consensus EPS estimates four times [2].

References:
[1] https://sg.finance.yahoo.com/news/jefferies-lifts-price-target-c-043519424.html
[2] https://finance.yahoo.com/news/c-h-robinson-worldwide-chrw-140024167.html
[3] https://www.chrobinson.com/en-us/about-us/newsroom/