Why XPO Logistics Inc. Stock Surged Today
Shares of XPO Logistics (NYSE: XPO) flew 14.4% higher Friday after Recode published an article reporting that Home Depot (NYSE: HD) had considered taking over the e-commerce specialist. Unsurprisingly, investors reacted positively to speculation about an acquisition.
Image source: XPO Logistics.
According to the Recode article, Home Depot has held internal discussions about making a bid for the freight, transportation, and logistics provider, whose market cap soared past $10 billion on the news. Part of Home Depot's justification for a bid seems to be to prevent Amazon (NASDAQ: AMZN) from taking over the company; the e-commerce giant has been making inroads into package delivery, including taking a stake in Atlas Air, an air cargo provider, buying thousands of truck trailers, and handling its own last-mile delivery with an Uber-like program called Amazon Flex. But what Home Depot's other rationales for a bid might be are less clear.
Source: Fool.com
Xpo Logistics Inc. Stock
With 32 Buy predictions and 3 Sell predictions Xpo Logistics Inc. is one of the favorites of our community.
As a result the target price of 125 € shows a positive potential of 20.25% compared to the current price of 103.95 € for Xpo Logistics Inc..
