When I last wrote about XPO Logistics (XPO)
in March of this year, I found the company's ambitions to be rather
remarkable, but potentially very lucrative for shareholders. In the
following four or five months, I didn't really second-guess my decision
to "watch and wait" as the stock went nowhere fast. Then the company
announced its largest-ever acquisition and the stock jumped to new highs
before settling down a bit.
Six months later, it's hard not to
like XPO Logistics even more. The company's combination of aggressive
M&A and organic growth is building credibility that the 2016 target
of $4 billion to $6 billion in revenue is attainable, not to mention the
5% EBITDA margin. A great deal could still go wrong between now and
then and there are significant uncertainties about what the company's
capital structure will look like at that point, but I think shareholders
can still find meaningful value in these shares.
Continue here:
XPO Logistics Building Credibility In Aggressive Growth Targets
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