XPO Logistics, Inc.
Thesis
XPO is positioned to capitalize on a large and growing market in third-party logistics with significant acquisition opportunities. The company has a strong management team led by CEO Brad Jacobs, who has a proven track record of successful roll-ups in the industry. With a target of reaching $5 billion in revenues and $300 million in EBITDA by 2017, the stock is projected to reach a target price of $49, representing an 87% total return.
Did it work?
The thesis for XPO was centered around its potential in the third-party logistics market and the capabilities of its management team. With a price performance of +671.1% since the pitch, far exceeding the projected target price of $49, the investment thesis has clearly played out successfully.
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