Top XPO Logistics Inc. executives have been telling investors over the past few weeks that they don’t share concerns that an economic “hurricane” is about to hit the U.S., saying they haven’t seen a dramatic decline in demand for the company’s services.
In one of the sessions, an XPO executive was asked why after spending four years acquiring and integrating 18 companies, it is selling or spinning off everything except its North American LTL business? The executive responded that XPO had “created a stock that relatively few investors were interested in” because it was a complex creature with many moving parts.
To earn Wall Street’s love, XPO began to shed virtually all of its assets, starting with its contract logistics business, now known as GXO Logistics Inc., (NYSE: GXO) which was spun off last summer. The company sold its intermodal business in March and has put its freight forwarding business up for sale. It will spin off its brokerage, final-mile and managed transportation operations by the end of 2021. It also plans at some point to sell or publicly list its European business.
It hasn’t helped much up to now. XPO shares, which traded at near $91 a share in mid-August, closed Wednesday at $45.70. Analysts, for their part, remain upbeat on the shares, with 12-month price targets in some cases of well over $100 a share.
From - Freightwaves.com
In one of the sessions, an XPO executive was asked why after spending four years acquiring and integrating 18 companies, it is selling or spinning off everything except its North American LTL business? The executive responded that XPO had “created a stock that relatively few investors were interested in” because it was a complex creature with many moving parts.
To earn Wall Street’s love, XPO began to shed virtually all of its assets, starting with its contract logistics business, now known as GXO Logistics Inc., (NYSE: GXO) which was spun off last summer. The company sold its intermodal business in March and has put its freight forwarding business up for sale. It will spin off its brokerage, final-mile and managed transportation operations by the end of 2021. It also plans at some point to sell or publicly list its European business.
It hasn’t helped much up to now. XPO shares, which traded at near $91 a share in mid-August, closed Wednesday at $45.70. Analysts, for their part, remain upbeat on the shares, with 12-month price targets in some cases of well over $100 a share.
From - Freightwaves.com