Oppenheimer maintains GXO stock Outperform with $55 target

On Friday, Oppenheimer analyst Scott Schneeberger maintained an Outperform rating and a $55.00 price target on GXO Logistics Inc. (NYSE: GXO). The reaffirmation of the stock’s rating and price target came after the analyst’s recent investor meetings with GXO’s Chief Strategy Officer, Kristine Kubacki. According to InvestingPro data, eight analysts have recently revised their earnings estimates upward, with price targets ranging from $40 to $63.

Schneeberger highlighted GXO Logistics’ potential for solid organic growth in the near future, citing the company’s momentum in securing new business and a robust sales pipeline. The optimism appears well-founded, as the company has achieved impressive revenue growth of 23.4% over the last twelve months. GXO’s ability to win new contracts has been attributed to its large scale, international reach, and advanced automation technology, which enable it to benefit from ongoing trends toward supply chain outsourcing.

Despite the company’s stronger-than-expected performance in the first quarter of 2025, GXO has chosen to maintain its adjusted EBITDA guidance for the year, which Schneeberger suggests might be cautious. He anticipates that GXO’s EBITDA will grow at an accelerated pace in the years ahead, particularly once the company finalizes its acquisition of Wincanton, pending regulatory approval.

The analyst also pointed out that GXO’s current valuation appears attractive. The stock is trading at approximately 7.9 times its projected 2025 adjusted EBITDA, which is below the company’s historical average multiple of 10 times forward twelve months (FTM) consensus EBITDA. Schneeberger’s $55 price target is based on a 10 times multiple of the firm’s estimated 2025 adjusted EBITDA.

In other recent news, GXO Logistics, Inc. reported strong first-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.29, compared to the forecast of $0.25. The company also exceeded revenue forecasts, reporting $3 billion against the expected $2.93 billion, marking a 21% year-over-year increase. GXO Logistics reaffirmed its guidance for the full year, projecting organic revenue growth between 3% and 6% and adjusted EBITDA ranging from $840 million to $860 million. Additionally, the company announced the successful integration of its Wincanton acquisition, which is expected to contribute positively to its financial performance.

Stifel analysts maintained a Buy rating on GXO Logistics, with a $66 price target, citing the company’s solid performance and strategic initiatives as attractive investment opportunities. The firm’s recent contract with the UK’s National Health Service is anticipated to bolster its expansion into the healthcare sector. Furthermore, GXO Logistics expanded its Board of Directors by appointing five new members, enhancing its strategic growth and operational capabilities.

During its 2025 Annual Meeting, GXO shareholders approved the election of nine directors, ratified KPMG LLP as the independent auditor, and endorsed executive compensation. The company continues to focus on AI and automation technologies to drive future growth, aligning with its strategic goals. These developments reflect GXO Logistics’ ongoing efforts to strengthen its market position and operational efficiency amidst a dynamic economic environment.

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