Morgan Stanley analyst Ravi Shanker maintained a Buy rating on GXO Logistics (GXO – Research Report) yesterday and set a price target of $57.00.
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Ravi Shanker has given his Buy rating due to a combination of factors surrounding GXO Logistics. Despite concerns from the Competition and Markets Authority regarding GXO’s merger with Wincanton, management remains optimistic about the overall business impact. They note that the grocery segment, which has raised competition concerns, constitutes less than 10% of Wincanton’s revenue.
Shanker believes that the potential risks associated with the merger are manageable, especially since the current stock price already reflects these concerns. He also emphasizes GXO’s strong business model, which is capable of delivering sustainable growth. The attractive risk-reward profile further supports his optimistic outlook, suggesting that the company’s fundamentals remain solid despite recent regulatory challenges.
In another report released on February 18, Oppenheimer also maintained a Buy rating on the stock with a $55.00 price target.
GXO’s price has also changed moderately for the past six months – from $48.720 to $40.440, which is a -17.00% drop .