It's almost surprising that XPO Logistics (XPO)
hasn't made another major acquisition since I last wrote about the
company in mid-January. I am of course being facetious, but not by much,
as XPO management has shown an extreme willingness to identify,
negotiate, and close deals that bring in new revenue and business
opportunities to this fast-growing third-party logistics provider.
The
investment thesis here still comes down to belief. If you believe that
management will hit its goal of $7.5 billion in revenue and $425 million
in EBITDA in 2017, these shares look quite cheap today, but ample risks
remain regarding the company's ability to integrate acquisitions,
manage the balance sheet, and drive those mid-single digit EBITDA
margins. I don't have complete confidence that management will get
there, but "close" is still good enough to make this a stock worth
considering.
Click this link to continue:
XPO Logistics' $7 Billion Revenue Ambition
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