Nippon Express: Why I Am Upgrading From Sell To Strong Buy
Source: SeekingAlpha
2025-02-28 17:30:26 ET
Summary
- Nippon Express Holdings, Inc., the 8th largest global freight forwarder, missed its FY24 profit target by 9.2%, highlighting the thin-margin nature of the business.
- Despite the miss, Nippon Express aims for 4.7% revenue growth and a 3% margin in FY25, indicating cautious optimism.
- Upgrading Nippon Express to a strong buy with a $23.79 price target due to improved EBITDA and free cash flow CAGRs.
- Risks include margin pressure and currency risk, but growth in e-commerce forwarding supports significant upside potential for NPEHF stock.
Nippon Express Holdings, Inc. ( NPEHF , NEXHY ) is one of the companies for which I added coverage in November. Despite increasing focus on the growth potential in India, the business remained unappealing to me. The stock lacked appeal to me due to the low-margin nature of the business....
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Nippon Express: Why I Am Upgrading From Sell To Strong Buy
Nippon Express Holdings
NASDAQ: NPEHF
NPEHF Trading
50675.0% G/L:
$20.31 Last:
300 Volume:
$20.31 Open:
