On Thursday, TD Cowen maintained a positive stance on GXO Logistics Inc. (NYSE:GXO), reasserting both an Outperform rating and a $78.00 price target. The firm also reiterated the stock as its Best Europe Idea. The endorsement comes as GXO is perceived to be a long-term beneficiary of the expanding outsourced logistics market.
According to the firm, GXO Logistics has secured $568 million in business wins in 2024, which is expected to provide earnings clarity despite some challenges in omnichannel segments. This development is significant as it underlines the company's growth trajectory and its ability to secure substantial contracts.
The firm also noted that GXO is currently trading at a discount compared to its historical average and its peers in the United States and Europe. This assessment suggests a potential undervaluation of GXO's stock, highlighting an opportunity for investors.
The analyst from TD Cowen emphasized the attractiveness of GXO's shares at their current price, suggesting that the market may not fully appreciate the company's value and prospects. The $78.00 price target remains unchanged, reinforcing the firm's confidence in GXO's performance potential.
In summary, TD Cowen's reiteration of the Outperform rating and the $78.00 price target, coupled with the designation of GXO Logistics as its Best Europe Idea, reflects a strong conviction in the company's market position and future earnings prospects amidst a growing industry landscape.
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