Analysts react to XPO Logistics Inc's (NYSE:XPO) plan to create two standalone, publicly traded companies.
- Cowen analyst Jason Seidl raised XPO Logistics price target to $117 from $115 and maintained their Outperform rating on the shares.
- The analyst states that he liked the spin-off announcement. Seidl sees a core LTL-play offering potential multiple expansion while using the asset sale to relieve debt load.
- Related: XPO Logistics to Split Company Into Two And Divest These Units To Unlock Value For Investors
- JPMorgan analyst Brian Ossenbeck views XPO Logistics' move as positive and maintains his Overweight rating.
- He anticipates the stock to react positively to the news.
- Wells Fargo analyst Allison Poliniak-Cusic raised the XPO Logistics price target to $119 (an upside of 69%) from $112 and maintained an Overweight rating on the shares.
- Poliniak-Cusic thinks that the company's move is favorable, enabling them to execute existing and future productivity/growth strategies better.
- Deutsche Bank analyst Amit Mehrotra maintained a Buy rating on the shares, stating that XPO Logistics' plan creates "at least" $13 per share of incremental equity value.
- The analyst considers this move consistent with the path to significant value creation.
- Price Action: XPO shares are trading higher by 15.7% at $71.68 on the last check Wednesday.
