Truist Securities increased its price target for GXO Logistics Inc. (NYSE:GXO) to $70.00 from $65.00 on Thursday, while maintaining a Buy rating on the contract logistics provider. The new target implies upside from GXO's prevailing share price of $63.35, which was trading close to its 52-week high of $64.19 at the time of the announcement.
In its assessment, Truist emphasized that GXO's trajectory into 2026 is becoming more dependent on successful execution. The brokerage pointed to a foundation of booked business wins that support growth and identified potential margin expansion as a key lever tied to productivity and integration gains. Any such margin improvement would be notable relative to GXO's current gross profit margin of 15.09%.
Truist also flagged that the company's guidance is constructed on an assumption of flat volumes. That framing creates a specific risk-reward dynamic: if GXO can sustain the planned implementation pace and convert AI-driven productivity initiatives into measurable margin benefits, the payoff could extend into 2027. The firm left its 2026 estimates intact and initiated modeling for 2027, a step that contributed to the decision to raise the price target.
Supporting the brokerage's outlook, InvestingPro data referenced by Truist indicates net income is expected to grow this year, which aligns with a constructive earnings trajectory. The firm reinforced that the path to improved profitability is execution-sensitive and dependent on productivity delivery tied to technology and integration.
Operationally, GXO focuses on supply chain management and warehouse operations, emphasizing technology-led productivity improvements as part of its growth strategy. Those initiatives are central to Truist's view that margin expansion is feasible without reliance on increased volumes.
Recent company results provide context for the updated target. In its fourth-quarter 2025 earnings report, GXO posted adjusted earnings per share of $0.87, ahead of the $0.83 consensus estimate. Revenue for the quarter came in at $3.5 billion, compared with an expected $3.48 billion. The beat on both EPS and revenue was followed by an uptick in investor confidence, according to Truist's commentary.
Truist's move to raise the price target while keeping its Buy rating reflects a view that the firm's assumptions and newly initiated 2027 coverage support a higher valuation, provided execution and productivity gains materialize. The brokerage did not change its 2026 estimates, underscoring that the valuation adjustment rests in part on the longer-term modeling added for 2027.
Summary
Truist raised GXO's price target to $70 from $65 and kept a Buy rating, citing secured business wins and potential margin improvements driven by productivity and integration delivery. The firm maintained 2026 estimates and began coverage for 2027. GXO's latest quarterly results beat estimates on EPS and revenue.