- Citi analyst Christian Wetherbee is "constructive" on GXO Logistics Inc's (NYSE:GXO) purchase 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.
