GXO – 'defensiveness of business model supports valuation'

UBS analysts yesterday released a GXO note to investors in the wake of Q1 numbers.

Stock was little changed Wednesday (-0.5%), but the pros are adamant the contract logistics firm offers plenty of upside – almost +40% from current levels, in fact.

They “continue to apply an 11x multiple to our 2025 EBITDA forecast to derive our price target of $71 (unchanged)”.

They added the defensiveness “of GXO’s model, and the medium-term support for growth from warehouse automation and outsourcing provide an attractive growth profile and we rate GXO Buy”.

The full note is here.