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