A key shipping company has just received two updates on new management additions that could underpin a strong recovery. Citi moved XPO shares from neutral to long on Thursday, while JPMorgan Chase moved from neutral to overweight on Friday. Citi’s new $50 price target represents about a 22% upside for investors from the stock’s Thursday closing price of $40.79. JP Morgan is slightly more optimistic with a price target of $52 per share which represents an upside of 27%. The company focuses on the transport of goods in partial batches. Shares of XPO were higher in premarket trading, gaining 1.8% on Friday. The shares have gained about 22% since the start of the year. XPO YTD mountain Shares of transportation company XPO head higher on Friday after two key upgrades from Citigroup and JP Morgan. Both companies cited additions to the company’s management structure as a key factor behind the bullish upgrades. XPO recently added new chief operating officer David Bates from Old Dominion, and he will assume the role on Friday. Former Old Dominion chief financial officer Wes Frye joined XPO’s board on March 9. THURSDAY. “With this key addition, we are increasingly confident in XPO’s ability to close its GOLD and price gap against its peers Old Dominion and Saia.” JP Morgan’s Brian Ossenbeck is also encouraged by the additions to XPO’s management structure, although the company has previously downgraded the stock due to concerns over earnings downgrades. “Our estimates remain unchanged, but we are moving to overweight with a higher, but still discounted multiple to our peers, as we believe this strategic hire should help unlock XPO’s potential which is still not fully reflected. in the title,” Ossenbeck said. – CNBC’s Michael Bloom contributed to this report.
