Oppenheimer Raises XPO Logistics Price Target To $45 Following $700 Million Funding
In a research report issued today, Oppenheimer analyst Scott Schneeberger reiterated an Outperform rating on XPO Logistics (NYSE:XPO) with a price target of $45, in light of the recent news that three investors have agreed to provide a $700 million infusion of equity that will enable the company to accelerate its revenue and profitability growth plans.
Schneeberger noted, “With XPO armed with liquidity following its recent $700M equity infusion via three sovereign investors/a robust and seemingly ripe acquisition pipeline/tailwinds via strong business conditions in truck brokerage/other segments, we’re increasing our 2014-2017 estimates/target from $36 to $45. We estimate XPO possessing ~$950M of liquidity presently, and positioned to enhance it via its ABL credit facility as revenue builds over time. This affords it the ability to further enhance its dynamic acquisitive growth, which is complemented by its also lofty organic growth. Considering the infrastructure base the company has proactively created/its integration proficiency already demonstrated/its apparent future growth opportunities, we afford XPO the benefit of the doubt in executing upon its ambitious yet achievable long-term objectives.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Scott Schneeberger has a total average return of 18.1% and a 72.5% success rate. Schneeberger has a 72.0% average return when recommending XPO, and is ranked #189 out of 3300 analysts.