James Sands • 15 Comments
Sep. 10, 2015, 7:27 PM
- XPO Logistics' (NYSE:XPO) $3B acquisition of Con-way (NYSE:CNW) sent transportation stocks higher today and generated mostly praise from analysts, with some skepticism of the departure from XPO's asset-light strategy.
- Oppenheimer's Scott Schneeberger says the deal looks "strategically logical" and further enhances XPO's broad portfolio of logistics services.
- Credit Suisse's Allison Landry calls the deal a "transformative" expansion of XPO's less-than-truckload shipping capabilities but says the move significantly alters XPO's asset intensity and capex-to-revenue ratio, and adds cyclical risk inherent to LTL shipping as well as questions about who will lead the unit.
- Stephens' Jack Atkins offers a more bearish view, saying the acquisition is a "major departure" from XPO's previously non-asset or at least asset-light strategy, and increases the company's earnings cyclicality.
- In today's trade: CNW +33.8%, XPO -11.1%, ODFL +2%, YRCW +7.3%, WERN +1.8%, KNX +1.3%, UACL +2.3% as the Dow Jones Transports rose 0.9%.
Mar. 9, 2012, 12:13 PM
YRC Worldwide (YRCW +5.1%) is trading higher today, after earlier agreeing to sell its interest in Shanghai Jiayu Logistics to its 35% joint venture partner, as the struggling trucking company continues to sharpen its focus on the North American less-than-truckload business.| Mar. 9, 2012, 12:13 PM