XPO now consists of less-than-truckload shipping and truck brokerage operations. GXO will oversee customers’ warehouses and logistics operations.
XPO recently traded at $83.85, up 3.92%, and GXO was at $59.10, up 2% from its when-issued price.
Truist analyst Stephanie Moore raised her price target for XPO to $185 from $176, keeping her buy rating after a strong earnings report last week.
“Following the 2Q results and updated guidance, we are raising our consolidated adjusted EBITDA estimates to $1.895 billion and $2.079 billion, respectively (from $1.884 billion and $2.052 billion),” she wrote in a report.
“Our sum of the parts valuation values XPO at 11.1x FY2 EBITDA, a discount to the peer group given the increased leverage profile of XPO versus its asset-based LTL and asset light truck brokerage peers.”
Further, “we are valuing GXO at 17.3x, which we believe is appropriate given the strong industry tailwinds and core return profile of the business,” Moore said.
TheStreet founder Jim Cramer last month waxed bullish about XPO in light of the spinoff.
"I think XPO is a great company and will be worth even more after the spinoff," he said.