Jason Seidl, an analyst from TD Cowen, reiterated the Buy rating on GXO Logistics (GXO – Research Report). The associated price target remains the same with $62.00.
Jason Seidl has given his Buy rating due to a combination of factors that highlight GXO Logistics’ potential for future growth despite current challenges. GXO is positioned at the forefront of the next generation of outsourced logistics, driven by automation, supply chain complexities, and labor inflation. These factors are expected to spur investment into GXO’s services, which are well-suited to address issues like tariffs, near-shoring, and European defense spending.
Despite recent setbacks such as the surprise CEO departure and the ongoing review of the Wincanton acquisition, GXO’s valuation remains attractive at approximately 12.5 times forward earnings. The company’s robust pipeline, with significant new contract wins, particularly in inelastic demand sectors like healthcare and European defense, underscores its growth potential. While near-term risks exist, including customer attrition and the need for a new CEO, GXO’s strategy to focus on high-quality customer acquisition and de-leveraging is expected to stabilize its performance in the long run.
Seidl covers the Industrials sector, focusing on stocks such as Covenant Logistics Group, XPO, and Saia. According to TipRanks, Seidl has an average return of 20.4% and a 63.43% success rate on recommended stocks.
In another report released yesterday, Stifel Nicolaus also reiterated a Buy rating on the stock with a $66.00 price target.