XPO Logistics initiated with an Outperform at BMO Capital

BMO Capital analyst Fadi Chamoun initiated coverage of XPO Logistics with an Outperform rating and $44 price target. As a pure-play carrier, focused solely on less-than-truckload, XPO has an opportunity for margin expansion and deleveraging to "underpin a re-rating in valuation higher over the medium-term," the analyst tells investors in a research note. When coupled with a renewed focus on volume growth, XPO offers "significant share price upside potential in the coming years," says the firm.