What happened

Stock markets closed lower again on Monday, with the Dow down 3%, and the Nasdaq off a more modest 0.3%. One stock defying the downturn, though, was supply chain solutions provider XPO Logistics (XPO -1.74%). Instead of falling, by the close of trading today, XPO Management stock was up 9%.

And maybe you can thank SunTrust for that... and Morgan Stanley, too.

Man in a suit supporting a rising stock arrow

Image source: Getty Images.

So what

On Monday, investment bank SunTrust announced it is lowering its price target for XPO, reports StreetInsider.com. Still, the analyst's new, reduced price target of $70 a share appears to imply there's nearly 58% upside to the stock -- which turns this potentially bad news into some pretty good news, if you ask me.  

At the same time, investment bank Morgan Stanley came out with a note this morning that upgrades transport industry stocks in general. While not focusing on XPO in particular, notes TheFly.com, Morgan Stanley's note argues that a 25% decline in average stock prices year to date leaves the risk-reward ratio for transport stocks more balanced.

Now what

If the U.S. economy falls into recession, as seems likely to happen, if it hasn't already happened, Morgan Stanley argues that this will hurt some stocks more than others. In the case of transport stocks like XPO, the "air pocket will likely not be as severe as other sectors," and there's therefore less risk in owning XPO stock.

Judging from investors' reaction today, they agree with that assessment.