Bullish analysis of GXO Logistics, Inc., highlighting strong Q1 results and long-term growth potential.
From Yahoo Finance: 2025-05-15 11:25:00
GXO Logistics, Inc. (GXO) is analyzed in a bullish thesis on Substack by P14 Capital, with shares trading at $41.07 on May 14th. A premier third-party logistics (3PL) player, GXO delivered strong Q1 FY25 results, with revenue up 21.1% YoY to $2.98 billion and EPS of $0.29 beating estimates.
A standout catalyst for GXO is its $2.5 billion, 10-year contract with the UK’s National Health Service, highlighting increased demand for outsourced logistics. Additional wins and a $2.5 billion sales pipeline provide long-term visibility, with 41% of new wins involving automation and 42% tied to e-commerce.
Despite not being among the 30 Most Popular Stocks Among Hedge Funds, GXO has potential for compelling upside with projected FY25 revenue of $12.87 billion, expanding EBITDA, and significant share buybacks. Analysts see a base-case $60/share target with limited downside to $29 and further gains driven by automation and disciplined execution.