10:16 AM EDT, 03/12/2024 (MT Newswires) -- RBC Capital Markets on Monday noted TFI International Inc. ( TFII ) 's acquisition of Hercules Forwarding, a less-than-truckload (LTL) provider focused on intra-US and US-to-Canada cross-border transportation.

RBC said the transaction represents about US$100 million in annualized revenue and US$20 million in EBITDA or 1% of the company's 2024 consolidated EBITDA estimate, assuming margins that are in line with TFII's LTL segment.

"While we do not expect the transaction to move the needle from an EBITDA perspective, we are nevertheless positive and view the transaction as likely accretive (terms not disclosed) and increasing the company's scale," RBC said. "We continue to consider M&A a key catalyst for the shares and have a positive view on TFII continuing to capitalize on opportunities."

RBC gave TFI an outperform rating and a US$155.00 price target.

Price: 202.35, Change: +2.28, Percent Change: +1.14