GXO logistics stock holds steady as UBS reiterates buy rating

Investing.com - UBS reiterated its Buy rating and $50.00 price target on GXO Logistics Inc. (NYSE:GXO), a $5.49 billion market cap logistics company, following the company’s announcement of a new CEO and regulatory approval for a key acquisition. According to InvestingPro data, the stock has surged over 10% in the past week.

On Friday, GXO announced Patrick Kelleher will become their new CEO starting on August 19. Kelleher previously served as CEO of DHL Supply Chain North America and brings 33 years of experience in the supply chain industry to the logistics company, which currently generates annual revenue of $12.23 billion.

Kelleher will replace Malcolm Wilson, who had announced his planned 2025 retirement in December of 2024. The leadership transition comes as GXO works to strengthen its market position in the logistics sector.

The CEO announcement followed Thursday’s news that the UK Competition and Markets Authority (CMA) approved GXO’s acquisition of Wincanton. UBS noted these developments address what it considers the "primary idiosyncratic risks" for the company. InvestingPro analysis shows GXO maintains a FAIR overall financial health score.

GXO has also increased its 2025 guidance, which UBS interpreted as reflecting stability in the logistics provider’s business operations. The firm maintained its positive outlook on GXO’s stock with the unchanged $50.00 price target. InvestingPro subscribers can access additional insights, including 8 more ProTips and detailed valuation metrics for GXO.

In other recent news, GXO Logistics has announced several key developments. The company received regulatory approval for its acquisition of Wincanton and appointed Patrick Kelleher as the new CEO, effective August 19, 2025. This leadership change follows the retirement of Malcolm Wilson. GXO Logistics also raised its 2025 adjusted earnings per share guidance to $2.43-2.63, surpassing previous estimates, and increased its adjusted EBITDA target to $860-880 million, exceeding prior forecasts. Citi has raised its price target for GXO to $56.00, maintaining a Buy rating, while Oppenheimer continues to rate the stock as Outperform with a $55.00 price target. GXO has launched an enhanced logistics solution aimed at midsize firms in the U.S., integrating services acquired through PFSweb (NASDAQ:PFSW) with GXO Direct. Additionally, shareholders approved the election of board members, the ratification of KPMG LLP as the independent auditor, and an advisory vote on executive compensation at the company’s 2025 Annual Meeting. These developments highlight GXO’s strategic moves and financial outlook as it continues to expand its capabilities and leadership.

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