Market Overview

Oppenheimer Initiates Coverage of XPO Logistics with Outperform Rating, $25 PT

Related XPO
Benzinga's M&A Chatter for Tuesday July 29, 2014
UPDATE: Morgan Stanley Reiterates On XPO Logistics On Compelling Upside Despite Risk

In a report published earlier today, Oppenheimer Holdings initiated coverage of XPO Logistics, Inc. (NYSEAMEX: XPO) with an Outperform rating and a $25.00 price target .

Oppenheimer went on to say “We're initiating on XPO Logistics with an Outperform rating/$25 target. With $177M of 2011 revenue, XPO is targeting $4-6B annual revenue within five years. Thus, via strong-ROIC cold starts/an aggressive acquisition plan, the company will possess a dynamic organic (secular growth via customers outsourcing logistics) and acquisitive growth story. XPO's CEO, the majority shareholder, has a proven track record of discovering and evolving opportunities expeditiously into billion dollar entities, and has selected a formidable leadership team to deliver again. We're introducing estimates that portray XPO's path to $5B revenue/$252M EBITDA in 2016E. Our $25 target is based on 10x 2016E EV/EBITDA discounted to 2012 at an 18% rate.”

XPO Logistics, Inc. closed yesterday at $15.80.

Posted-In: Oppenheimer HoldingsAnalyst Color Initiation Analyst Ratings

 

Related Articles (XPO)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters