2024-03-26 12:18:29 ET
Summary
- GXO trades at 10x 2024E Adj. EBITDA, which seems unreasonable for a company with a track record of growing at double digits across cycles.
- The market is overly focused on its short-term outlook and potential missing of its 2027 targets despite favourable long-term prospects.
- The secular trends of further logistics outsourcing and retail e-commerce penetration will help the company grow "by simply showing up."
Investment Thesis: Underappreciated Secular Winner Clouded By Short-Term Pessimism
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For further details see:
GXO Logistics: Secular Winner At An Attractive Price