Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

XPO Logistics' $7 Billion Revenue Ambition

It's almost surprising that XPO Logistics (NYSE: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...

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