Read How Analysts Reacted To XPO Logistics Q4 Results

Analyst update price target for XPO Logistics Inc XPO post Q4 results.
Wells Fargo analyst Allison Poliniak-Cusic raised the price target to $112 (an upside of 58.6%) from $107 and maintained an Overweight rating on the shares.
The analyst believes that XPO is on a manageable path to improved profitability for less-than-truckload, which she thinks has already started to manifest in results, as reflected in the improved yield and commentary on improved service.
Poliniak-Cusic sees multiple levers for potential upside, including capital allocation and margin/ mix improvements, should the LTL improvements gain momentum.
Deutsche Bank analyst Amit Mehrotra lowered the price target to $120 (an upside of 67%) from $131 and maintained a Buy rating on the shares post the Q4 results.
The analyst says his estimates are still "way above consensus." There is "substantial upside" in the shares from XPO's plan that accelerates deleveraging and focuses the company on becoming a "pure-play LTL," mentions Mehrotra.
Keybanc analyst Todd Fowler lowered the price target to $95 (an upside of 34.5%) from $110 and maintained an Overweight rating on the shares.
Recently, the company reported fourth-quarter revenue growth of 14.4% year-over-year to $3.36 billion, beating the consensus of $3.27 billion.
Adjusted EPS improved to $1.34, beating the consensus of $0.99.
The operating income increased 13.7% Y/Y to $174 million, and the margin was flat at 5.2%.
XPO Logistics generated cash from Operating Activities of Continuing Operations of $656 million in FY21, compared to $388 million a year ago. Free cash flow was $475 million.
FY22 Guidance: The company expects Adjusted EBITDA of $1.36 billion to $1.40 billion, with North American LTL expected to generate at least $1 billion.
It expects Adjusted diluted EPS of $5.00 to $5.45 versus a consensus of $4.73; and Free cash flow of $400 million to $450 million.
Price Action: XPO shares closed lower by 1.35% at $68.74 on Thursday.

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