TFI's Asset Sale Prompts Price Target Hike At RBC Capital

RBC Capital analyst Walter Spracklin raised the price target for TFI International Inc TFII to $115 (an upside of 11%) from $112 while maintaining the Outperform rating on the shares.
The analyst stated that he is taking a positive view on the sale of CFI’s Truckload, Temp Control, and Mexican non-asset logistics businesses to Heartland Express, Inc. HTLD for $525 million.
Related: Heartland Express Buys Contract Freighters Truckload Business For $525M
Spracklin believes the sale represents a continuation of a strategic shift toward asset-light and higher returning businesses.
The analyst views M&A as a key catalyst for the shares and has taken higher the price target, driven by an increased likelihood in his view of an upcoming acquisition.
Price Action: TFII shares are trading higher by 2.35% at $103.63 on the last check Tuesday.