Oppenheimer Cuts Price Target on XPO Logistics (XPO) as Stabilization Creates a Compelling Entry Point

Oppenheimer maintained an Outperform rating on XPO Logistics (NYSE: XPO), and cut the price target to $33.00 (from $56.00), as stocks may be stabilizing, creating a compelling entry point. A high beta stock in a tough market, XPO's been pressured in recent months. Exacerbating the situation, investors unfavorably received XPO's recently-announced Con-way acquisition.

Analyst Scott Schneeberger commented, "XPO's stock price has been on a roller-coaster, doubling from mid-May 2014 to mid-May 2015, only to round-trip recently. In a tough market, the recent slide was exacerbated by an unfavorable reception to XPO's recently-announced Con-way acquisition, which substantially bolsters EBITDA but tempers the overall applied multiple to XPO's pro forma portfolio. Factoring everything the pendulum appears to have swung too far, with XPO appearing undervalued relative to our updated model (pro forma for Con-way/2016E sum-of-the-parts analysis.) We are modifying our PT from $56 to $33, which represents 8.5x EV/EBITDA our 2016E EBITDA, noting potential for enhanced growth/margin/multiple expansion thereafter as XPO fully garners integration synergies/executes operational efficiencies."

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 $22.74 yesterday.

You May Also Be Interested In

• Tyler Tech (TYL) PT Raised to $500 at Oppenheimer
• Keurig Dr Pepper (KDP) PT Raised to $39 at Jefferies
• Keefe, Bruyette & Woods Upgrades Trustmark (TRMK) to Outperform