12:51 PM EDT, 10/04/2024 (MT Newswires) -- CH Robinson Worldwide's ( CHRW ) operational improvement initiatives will boost earnings per share and increase the stock price, UBS said in a note Friday.

"Our 2025 EPS forecast is 12% ahead of consensus, as we expect CHRW to continue using technology tools to support gross

margin expansion, and productivity programs to drive progress toward a 40% operating margin in its NAST business," UBS analysts, including Thomas Wadewitz, said. NATS refers to North American Surface Transportation.

While a stronger truckload market would provide a clear tailwind, the analysts expect margin progress in 2025, and model a 37.5% margin even with only modest improvement in the cycle.

"We expect upside to 3Q EPS and CHRW's December 12 analyst meeting to act as catalysts for the stock," the analysts said. They raised their Q3 EPS estimate to $1.32, up from $1.24, and 2025 estimate to $5.25 from $4.75.

UBS upgraded CH Robinson Worldwide ( CHRW ) to buy from neutral and raised its price target to $140 from $100.

Price: 105.70, Change: +0.19, Percent Change: +0.18