- Analyst update price target for XPO Logistics Inc (NYSE:XPO) post Q4 results.
- Wells Fargo analyst Allison Poliniak-Cusic raised the price target to $112 (an upside of 58.6%) from $107 and maintained an Overweight rating on the shares.
- The analyst believes that XPO is on a manageable path to improved profitability for less-than-truckload, which she thinks has already started to manifest in results, as reflected in the improved yield and commentary on improved service.
- Poliniak-Cusic sees multiple levers for potential upside, including capital allocation and margin/ mix improvements, should the LTL improvements gain momentum.
- Deutsche Bank analyst Amit Mehrotra lowered the price target to $120 (an upside of 67%) from $131 and maintained a Buy rating on the shares post the Q4 results.
- The analyst says his estimates are still "way above consensus." There is "substantial upside" in the shares from XPO's plan that accelerates deleveraging and focuses the company on becoming a "pure-play LTL," mentions Mehrotra.
- Keybanc analyst Todd Fowler lowered the price target to $95 (an upside of 34.5%) from $110 and maintained an Overweight rating on the shares.
- Recently, the company reported fourth-quarter revenue growth of 14.4% year-over-year to $3.36 billion, beating the consensus of $3.27 billion.
- Adjusted EPS improved to $1.34, beating the consensus of $0.99.
- The operating income increased 13.7% Y/Y to $174 million, and the margin was flat at 5.2%.
- XPO Logistics generated cash from Operating Activities of Continuing Operations of $656 million in FY21, compared to $388 million a year ago. Free cash flow was $475 million.
- FY22 Guidance: The company expects Adjusted EBITDA of $1.36 billion to $1.40 billion, with North American LTL expected to generate at least $1 billion.
- It expects Adjusted diluted EPS of $5.00 to $5.45 versus a consensus of $4.73; and Free cash flow of $400 million to $450 million.
- Price Action: XPO shares closed lower by 1.35% at $68.74 on Thursday.
