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GXO Logistics: Strong Buy Rating Amid Growth Potential and Resilience Despite Challenges

GXO Logistics: Strong Buy Rating Amid Growth Potential and Resilience Despite Challenges

Analyst Ravi Shanker of Morgan Stanley maintained a Buy rating on GXO Logistics (GXOResearch Report), retaining the price target of $63.00.

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Ravi Shanker has given his Buy rating due to a combination of factors that suggest potential growth for GXO Logistics. Despite recent pressures from soft guidance in the upcoming fiscal quarters and challenges such as customer realignments, Shanker believes the company’s underlying model remains robust. The stock has already experienced a significant reset, dropping over 30% from previous highs, and this adjustment might have set a more favorable entry point for investors.
Moreover, Shanker notes the positive aspects of GXO’s recent performance, including a growth in organic revenue and strong new business wins, which are expected to bolster profitability throughout the year. The company has secured over $600 million in new revenue for 2025, indicating a potential for continued growth even amidst current headwinds. Although challenges such as currency fluctuations and pension costs persist, the overall outlook suggests that GXO is well-positioned to recover and grow, justifying the Buy recommendation.

In another report released on February 4, Citi also maintained a Buy rating on the stock with a $56.00 price target.

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