GXO Logistics stock rises as Citi raises price target on Wincanton deal

Published 23/06/2025, 10:54
GXO Logistics stock rises as Citi raises price target on Wincanton deal

Investing.com - GXO Logistics Inc. (NYSE:GXO) shares jumped 12% on Friday compared to a flat S&P 500, following regulatory approval for its Wincanton acquisition and the announcement of a new CEO.

Citi raised its price target on GXO to $56.00 from $54.00 on Monday while maintaining a Buy rating, citing the removal of key overhangs after the company completed its CEO search and received regulatory approval for the Wincanton deal.

Patrick Kelleher, formerly Global Chief Development Officer of DHL Supply Chain and Americas CEO of Williams Lea Tag, will take the helm as GXO’s new chief executive on August 19, the company announced Friday.

GXO raised its 2025 adjusted earnings per share guidance to $2.43-2.63 from the previous $2.40-2.60, exceeding prior Citi and consensus estimates of $2.30 and $2.32, respectively.

The logistics company also increased its 2025 adjusted EBITDA target to $860-880 million from $840-860 million, significantly above prior Citi and consensus forecasts of $844 million and $851 million.

In other recent news, GXO Logistics announced Patrick Kelleher as its new CEO, effective August 19, 2025. Kelleher brings extensive experience from his previous role as CEO, North America at DHL Supply Chain. Additionally, GXO Logistics has launched an enhanced logistics solution targeting midsize U.S. firms, integrating services from its acquisition of PFSweb (NASDAQ:PFSW) with GXO Direct, aiming to streamline logistics and fulfillment services. This development is intended to provide advanced technology solutions and nationwide one-day delivery capabilities.

Oppenheimer analyst Scott Schneeberger maintained an Outperform rating for GXO Logistics with a $55 price target, highlighting the company’s potential for organic growth and its strong sales pipeline. The analyst noted GXO’s momentum in securing new business and its strategic advantages in automation and international reach. Furthermore, GXO’s shareholders approved key proposals at the 2025 Annual Meeting, including the election of board members and the ratification of KPMG LLP as the independent auditor.

The company also expanded its Board of Directors with five new members, bringing diverse expertise in technology, consumer goods, and financial planning. These strategic appointments are expected to bolster GXO’s growth and operational excellence. The recent developments reflect GXO’s commitment to enhancing its service offerings and strengthening its leadership team.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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