12:56 PM EDT, 05/08/2024 (MT Newswires) -- XPO (XPO) is likely to deliver "strong" results in 2024, with adjusted EBITDA now expected to reach $1.26 billion, Oppenheimer said Wednesday.

The firm noted that the company's Q1 adjusted EBITDA of $288 million topped expectations by 7% and was 37% higher from a year ago. The brokerage now expects adjusted EBITDA of $1.26 billion for 2024, up from previous estimate of $1.24 billion.

Oppenheimer said that the outlook for business and operating ratio improvement provided by XPO at a conference this week was "encouraging," which came after the company delivered "yet another strong performance" in Q1, reported last week.

"XPO's improved service/operating metrics and investments in capacity are supporting increased business activity and financial performance, which we anticipate to continue," the firm said.

Oppenheimer maintained the company's outperform rating and $140 price target.

XPO shares were up almost 2% in recent trading.

Price: 112.41, Change: +2.08, Percent Change: +1.89