XPO Logistics (XPO) Target Lifted at FBR Capital on Pacer Deal

January 7, 2014 9:56 AM EST Send to a Friend
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Price: $44.15 +0.50%

Rating Summary:
    15 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 15 | Down: 38 | New: 13
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FBR Capital analyst John Mims reiterated an Outperform rating and bumped his price target on XPO Logistics (NYSE: XPO) from $30 to $33 amid the $335 million cash and stock acquisition of Pacer International, Inc. (NASDAQ: PACR).

"Though not the company's largest acquisition to date (XPO acquired last-mile operator 3PD in July 2013 for ~$365 million), the Pacer deal could be the most significant yet, as it will effectively double XPO's revenue run-rate to ~$2 billion and, importantly, provide a foothold into the quickly growing domestic and cross-border intermodal management (IMC) verticals, markets in which Pacer holds third and first market share positions, respectively," Mims comments. "We view Pacer's exposure to the cross-border trade as particularly beneficial, as more companies look to near-shore operations to Mexico in order to take advantage of the country's relatively cheap labor and shorter distance (relative to Asia) to the North American market."

For an analyst ratings summary and ratings history on XPO Logistics click here. For more ratings news on XPO Logistics click here.

Shares of XPO Logistics closed at $30.31 yesterday.

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