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Benzinga
Benzinga
Business
Akanksha Bakshi

Read How Analysts Reacted To Potential GXO - Clipper Logistics Deal

  • Citi analyst Christian Wetherbee is "constructive" on GXO Logistics Inc's (NYSE:GXOpurchase of Clipper Logistics in a deal valued at $1.3 billion, split between cash and stock.
  • Wetherbee maintained a Buy rating on the shares with a price target of $110.
  • The analyst likes the "high-growth nature" of Clipper's business, saying it is underpinned by e-commerce and reverse-logistics offerings, as well as the "reasonable multiple" GXO paid for the deal inclusive of synergies.
  • Wetherbee says the combination appears compelling geographically as well, given Clipper's presence in key European regions with minimal overlap to GXO's existing customer base.
  • Morgan Stanley analyst Ravi Shanker raised the price target to $75 (a downside of 6%) from $73 and maintained an Equal-Weight rating on the shares.
  • Recently, JPMorgan analyst Brian Ossenbeck kept an Overweight rating on GXO and expected a positive reaction in GXO shares on this news.
  • Price Action: GXO shares are trading lower by 5.37% at $79.42 on the last check Tuesday.
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