Citi upgrades XPO to 'buy' on share gains, pricing strength
XPO•Citigroup upgraded XPO to “buy” from “neutral” and raised its price target to $224, implying about 22% upside to the stock’s last close. The brokerage cited share-gain opportunities and pricing strength ahead of third-quarter earnings.
1. Citi raises rating
Citigroup upgraded the logistics firm to “buy” from “neutral” and raised its price target to $224. The target implied about 22% upside to XPO’s last close.
2. Rationale and estimates
Citi said it was upgrading the stock after its decline from the $230 price range to about $183 per share. It said recent declines across transportation stocks created “a more favorable risk-reward set-up” into third-quarter earnings, and that XPO sounded upbeat about opportunities for share gains and pricing strength. Nineteen of 26 brokerages rated XPO “buy” or higher, six rated it “hold” and one rated it “sell”; their median price target was $238. XPO shares were up 35% year to date through the previous day’s close.
