Analyst Ratings February 18, 2026

BofA Elevates TFI International Rating, Cites Stronger Cash Outlook and Operational Gains

Analyst raises EPS forecasts and price target amid expanding data-center and electric grid transportation revenues

By Avery Klein TFII
BofA Elevates TFI International Rating, Cites Stronger Cash Outlook and Operational Gains
TFII

BofA Securities upgraded TFI International to Neutral from Underperform and lifted its price target, pointing to improved cash generation, expected operational gains in U.S. less-than-truckload operations, and higher earnings-per-share estimates for 2026 and 2027. The move comes alongside other analyst adjustments and mixed company guidance for early 2025.

Key Points

  • BofA Securities upgraded TFI International to Neutral from Underperform and raised its price target to $123 from $111, citing improved cash generation and operational gains in U.S. less-than-truckload operations.
  • BofA increased EPS estimates - Q1 2026 EPS to $0.65 (from $0.60), full-year 2026 to $4.55 (from $4.35), and 2027 to $5.85 (from $5.50) - and now values the stock at 27.5 times 2026 EPS.
  • TFI reported strong fourth-quarter performance and material growth in niche businesses: data-center transportation revenue reached $43 million for 2025 (Q1 $8 million to Q4 >$15 million) and electric grid-related revenue topped $110 million.

BofA Securities has moved TFI International (NYSE: TFII) to a Neutral rating from Underperform while increasing its price target to $123.00 from $111.00. The stock is trading near $116.27 and the company’s market capitalization is about $9.9 billion.

In updating its valuation framework, BofA now places the stock at 27.5 times its estimated 2026 earnings per share, up from the prior 25.5 times multiple. That prospective multiple sits above the company’s historical earnings multiple band of roughly 11 times to 17 times as the firm expects earnings to progress beyond their trough in 2026.

Market measures show TFI’s current price-to-earnings ratio at 27.03, and analyst targets range from $110 to $160, with the stock trading around what analysts consider its Fair Value.

BofA highlighted three key drivers behind the upgrade: the prospect of meaningful free cash generation, operational improvements within the U.S. less-than-truckload segment, and expected growth in earnings per share in 2026. The analyst team adjusted near-term profit forecasts alongside the rating change.

Specifically, BofA raised its first-quarter 2026 EPS projection by 8 percent to $0.65 from $0.60, and lifted its full-year 2026 estimate by 5 percent to $4.55 from $4.35. The firm also increased its 2027 EPS estimate by 6 percent, taking it to $5.85 from $5.50.

Other broker activity has reflected similar reassessments following TFI’s fourth-quarter performance. TD Cowen raised its price target to $130 while maintaining a Buy rating after a strong Q4 showing. At the same time, the company issued first-quarter guidance that was below expectations, indicating a challenging start to 2025.

Operationally, TFI disclosed notable growth in two specialized verticals. Data center-related transportation generated $43 million in revenue for 2025, expanding across the year from about $8 million in Q1 to over $15 million in Q4. Revenue tied to electric grid-related work surpassed $110 million last year, reflecting substantial activity in that market.

In additional coverage moves, a note stated BofA had raised a price target to $93 citing the company’s growing involvement in data-center and electric grid-related transportation. Stifel also increased its price target to $113, highlighting TFI’s execution as an acquirer of transportation and logistics assets across North America.

There has been a board-level change as well. André Bérard announced his retirement as Lead Director after 23 years on the board, with Diane Giard named to succeed him. The change was presented as part of the company’s broader strategic and governance shifts.

The suite of analyst revisions, the company’s revenue expansion in specialized transport verticals, and the updated EPS trajectory frame the current market discussion around TFI as it moves through what analysts describe as a recovery in earnings and a push for stronger cash generation.

Risks

  • First-quarter guidance issued by the company fell short of expectations, indicating near-term revenue or margin pressure that could affect the transportation and logistics sector.
  • Valuation sits above the company’s historical P/E range, meaning upside depends on delivery of projected earnings recovery and cash generation; this impacts investor returns in the equity market.
  • Analyst price targets vary and include conflicting figures in recent coverage, which may reflect differing views on the sustainability of growth in specialized verticals such as data-center and electric grid transport.

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