Morgan Stanley lowered its score on XPO (NYSE:XPO) to Equalweight from Obese on a name that it says is extra idiosyncratic than cyclical or valuation pushed.

Analyst Ravi Shanker: “We proceed to love the story and administration execution however the inventory’s +30% run in little over a month takes valuation to 21x FY24e PE, which is tough to justify in our view. ODFL’s +23% YTD run additionally places valuation even larger at 26x FY24e PE however its historic high quality and powerful monitor report of upcycle outperformance makes it simpler to justify.”

XPO (XPO) is named much more of a present me” story now than it was simply after the RXO spinoff in December. The inventory is anticipated to be within the penalty field after the This fall miss as buyers anticipate extra proof on XPO execution and traction towards long-term targets

Shares of XPO fell 0.33% in premarket motion on Monday.

Learn why Looking for Alpha creator CDI Analysis has a Sturdy Purchase score on XPO.