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TRAXION A Will Pursue Cross Border M&A To Drive Future Upside

Nearshoring And E-Commerce Trends Will Transform Cross-Border Logistics

TRAXION A logo
TRAXION A
AnalystHighTarget
Not Invested
Published 28 Jul 2025

Update shared on 14 Dec 2025

Fair value Decreased 7.33%
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AnalystHighTarget's Fair Value
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1Y
-24.3%
7D
2.1%

Analysts have trimmed their price target on Grupo Traxión, lowering fair value from approximately $44.53 to $41.26 as they factor in slightly slower projected revenue growth, moderating profit margins, and a higher expected future P/E multiple.

What's in the News

  • Grupo Traxión is actively seeking mergers and acquisitions to accelerate its entry into the U.S. cross border cargo market, favoring inorganic growth over building operations from scratch (Third Quarter 2025 Conference Call).
  • Management views current valuation multiples for U.S. cargo companies as an attractive entry point, which supports the case for potential near term deal making (Third Quarter 2025 Conference Call).
  • The company expects USMCA negotiations to conclude positively next year, which reinforces its strategic focus on expanding cross border logistics capabilities via M&A (Third Quarter 2025 Conference Call).

Valuation Changes

  • Fair Value: Reduced moderately from MX$44.53 to MX$41.26 per share, reflecting lower growth and margin assumptions.
  • Discount Rate: Increased slightly from 21.86 percent to 22.71 percent, raising the required return on equity.
  • Revenue Growth: Trimmed modestly from 21.44 percent to 20.09 percent, signaling slightly more conservative top line expectations.
  • Net Profit Margin: Lowered from 4.80 percent to 4.17 percent, implying a meaningful decline in anticipated profitability.
  • Future P/E: Raised from 15.78x to 18.50x, indicating a higher multiple being applied to forward earnings despite the weaker operating outlook.

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Disclaimer

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