XPO Stock is ‘Too Cheap to Ignore’, Morgan Stanley Says and Upgrades to Overweight By Investing.com


© Reuters. XPO Stock is ‘Too Cheap to Ignore’, Morgan Stanley Says and Upgrades to Overweight

By Senad Karaahmetovic

Morgan Stanley analyst Ravi Shanker upgraded shares of XPO Logistics (NYSE:) to Overweight from Equal Weight.

The price target remains $75, signaling an upside of over 50% based on yesterday’s closing price of $48.46.

The upgrade move is mostly based on valuation as a 35% YTD drop in shares is overdone, Shanker argues.

“The stock appears to be reflecting steady state earnings would get cut in half, which can only happen if macro is significantly worse than our base case or execution deteriorates — both of which is unlikely, in our view,” the analyst told clients in a note.

Valuation is “very attractive”, the analyst added.

“Risk-reward look very favorable even in a potential recession scenario – with limited near-term downside and potential for significant upside, especially if idiosyncratic catalysts deliver,” Shanker added.

XPO shares are up almost 5% in pre-open Friday.

Leave a Comment

Leading the way

Let's build a better world together

Project planning
Design expertise
Great qualifications

Nullam vestibulum finibus sapien, id consequat mauris tempus auctor.


90 Newport St., Natick, MA 01760

83 Taylor Street, Kings Mountain, NC 28086

22 Birch Hill St., Villa Rica, GA 30180

Support requests


Nullam scelerisque leo felis, quis congue mauris tristique in. Suspendisse pulvinar, felis eu facilisis mattis, turpis odio luctus nisi, et ultrices velit enim quis lacus.

Request a quote

[Insert your contact form here]


Vivamus vehicula dictum elit at bibendum. Etiam finibus eros ut urna auctor ullamcorper. Sed at erat eget nisl rutrum ultrices sed eu ex.


Sign up to receive the latest news and trends from our company.

More questions? Get in touch