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Investing.com - UBS has initiated coverage on ID Logistics Group (EPA:IDL) with a Buy rating and a price target of EUR500.00, citing multiple growth factors for the French contract logistics operator.
The investment bank highlighted ID Logistics’ "solid track record of revenue growth," projecting the company will deliver mid to high single-digit organic sales growth in the medium term.
UBS noted that as a pure player in contract logistics, ID Logistics operates in a market that demonstrates greater resilience to GDP volatility while growing faster than other logistics segments, with continued growth expected from outsourcing trends.
The firm anticipates increased free cash flow generation from ID Logistics in coming years as revenue growth normalizes, providing additional financial flexibility.
UBS also identified potential upside from mergers and acquisitions activity as another factor supporting its positive outlook on the stock.
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