TD Cowen analysts downgraded Expeditors International (NYSE:EXPD) to Sell from Hold, revising their price target on the stock to $106 from $112. The analysts pointed to a weakening outlook for EXPD, noting that temporary boosts from factors like the recent short port strike and adjustments to Red Sea congestion are largely fading. Without these support factors, combined with growing ocean freight capacity, the analysts believe a return to pre-COVID margin levels is more realistic for assessing EXPD's earnings potential.

The analysts suggest that market optimism for a resurgence in sea-air conversions and a tighter air cargo space has waned, as reflected in the stock’s recent performance. They consider the consensus forecast for 3% EBIT growth in 2025 overly optimistic, instead projecting flat year-over-year growth.