Analyst Stephanie Moore of Jefferies reiterated a Buy rating on GXO Logistics (GXO – Research Report), retaining the price target of $75.00.
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Stephanie Moore’s rating is based on several factors influencing GXO Logistics’ financial outlook. Despite a lighter-than-expected organic growth in the fourth quarter and forecast for 2025 due to customer realignment and consolidation, Moore sees this as a temporary issue rather than a structural problem. The company’s new wins are on the rise, with a notable 10% increase in the quarter, and the sales pipeline is expanding, indicating continued customer interest and future growth potential.
Moore highlights that while the customer realignment impacts the immediate growth figures, it is balanced by the strong fundamentals of the company, including a record-setting contract in the healthcare sector and secured incremental revenues for upcoming years. The alignment of customer sites is seen as a natural adjustment to macroeconomic conditions, with no loss of business as other clients are taking over the spaces. Therefore, Moore believes the underlying business remains robust and recommends buying GXO shares during periods of market weakness.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $63.00 price target.
GXO’s price has also changed slightly for the past six months – from $46.450 to $42.760, which is a -7.94% drop .