XPO stock reaffirmed at Buy by StoneX on strong LTL trends

Stocks of Morningstar, Moody's, Goldman Sachs, Lazard, and StoneX rose 2.9%-3.3% after Fed Governor Waller signaled support for steady interest rates, citing disinflation trends. Waller noted PCE inflation dropped from 4.76% to 3.05% but warned of uncertainties. Market-implied odds for a September rate hike fell to 48.4%.

Moody's upgraded XPO's corporate family rating to Ba1 from Ba2, citing margin gains, stronger earnings, and improved credit metrics. The company's debt-to-EBITDA ratio fell to 2.8x, with revenue up 10% YoY. Moody's expects continued growth and deleveraging, with potential divestiture of XPO's European platform.

StoneX Group will acquire Banco Travelex, Brazil's first FX-focused bank, to expand its payments and foreign exchange services. The deal, pending approval, will add local banking infrastructure, including PIX capabilities and multi-currency accounts. StoneX aims to integrate Banco Travelex's services with its global offerings, enhancing its Latin American presence. The transaction is expected to close within 12 months.

S&P Global upgraded XPO's (NYSE: XPO) issuer credit rating to BB+ from BB, one notch below investment grade. The upgrade reflects improved trucking market fundamentals and better debt metrics, like a 35.7% FFO-to-debt ratio in Q2. XPO's senior secured debt remains investment-grade at BBB-. S&P's rating is now higher than Moody's, which kept XPO at Ba2 with a positive outlook.

Homerun Resources Inc. (TSXV:HMR, OTCQB:HMRFF) closed a C$2.0 million initial tranche of a convertible security financing with Lind Global Fund III, LP, managed by The Lind Partners, under a CSFA. The convertible has a 24-month term, C$0.66 conversion price, 1,850,000 warrants, and a six-month repayment holiday, with monthly repayments thereafter. Benchmark (StoneX subsidiary) received fees and shares.

StoneX Group (NasdaqGS: SNEX) said it will acquire Banco Travelex to expand its foreign exchange and payments business in Brazil and Latin America. The company expects the deal to broaden services and strengthen its local FX and settlement capabilities. StoneX reported Q3 revenue of $40.193 million and net income of $127.9 million.