GXO Logistics gains after report company exploring sale

GXO Logistics

10/10/2024 17:32

(Updates)
    ** Shares of GXO Logistics  GXO.N  up 14.3% at $58.14,
touching a near nine-month high
    ** Logistics services provider exploring a potential sale
after receiving takeover interest, a person familiar with the
matter tells Reuters
    ** GXO, spun off from trucking company XPO in 2021, is
working with a financial adviser to field acquisition interest
from suitors, which include rival logistics providers, source
says
    ** Company has not made a final decision to proceed with a
sale, possible that the talks may not result in a deal
    ** GXO has struggled as a publicly traded company, having
lost more than a fifth of its market value since it was spun off
from XPO
    ** But in recent quarters, GXO signed new customers and
reported revenue growth of 19%
    ** Separately, Citigroup initiated coverage with "buy"
rating and $60 PT on Wednesday
    ** Of 16 brokerages covering GXO, 13 rate "buy" or higher, 3
"hold"; median PT is $66 - LSEG data
    ** Including session's gains, stock down about 5% YTD


 (Reporting by Sukriti Gupta)
 ((Sukriti.Gupta@thomsonreuters.com;))