GXO Logistics resumed with an Overweight at Morgan Stanley

Morgan Stanley analyst Ravi Shanker resumed coverage of GXO Logistics with an Overweight rating and $70 price target following the completion of the Wincanton acquisition. GXO, which has grown revenue at a 13% compound annual growth rate from 2019-24, is “the best revenue growth story in Transports,” says the analyst, who views the long-term organic revenue growth story as supported by “a robust pipeline of new business and inorganic growth.” While stating that there “may be spicier near-term cycle plays,” the firm argues that the long-term risk-reward for GXO looks attractive.