UPDATE: XPO Logistics (XPO) PT Lowered to $62 at BofA Securities to Account for Intermodal Sale

May 10, 2022 5:46 AM EDT
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Price: $50.23 --0%

Rating Summary:
    27 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 4 | Down: 7 | New: 12
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(Updated - May 10, 2022 9:22 AM EDT)

BofA Securities analyst Ken Hoexter lowered the price target on XPO Logistics (NYSE: XPO) to $62.00 (from $69.00) after the sale of its intermodal business in March. 1Q22 adjusted EPS rose +58% year-over-year, to $1.25, above consensus' $0.93 estimate. XPO revised its 2022 EBITDA targets to account for stronger than anticipated 1Q results, led by Brokerage (Revs and adjusted EBITDA while the intermodal sale removes ~$20 million in adj. EBITDA contribution per quarter in 2Q-4Q. Management now targets 2022 adj. EBITDA of $1.35-$1.39 billion, with $360-$370 million in 2Q.

The analyst reiterated a Buy rating, stating "We lower our PO to $62 from $69. Our sum of the parts valuation adjusts for a lower target EBITDA multiple in LTL (to 8.0x from 8.5x), while holding at Brokerage (11.5x) and European truckload (5x), on market pressure on LTL values. We reit Buy on value opptys."

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