Benzinga | Aug 23, 2021 05:14PM EDT

Citigroup Adds New Stock With 21% Upside To Its Coverage

* Citigroup's analyst Christian Wetherbee initiated coverage on GXO Logistics Inc (NYSE:GXO) with a Buy rating and a price target of $95, implying an upside of 20.8%. The company now has a total of 9 analysts firms reporting ratings.

* Wetherbee believes GXO is well-positioned as a pure-play way to get exposure to the key transportation themes of outsourcing, e-commerce, and automation.

* Additionally, he sees the potential for better than expected growth into 2022 as a catalyst to keep shares moving higher after the spin.

* GXO Logistics is a spinoff of XPO Logistics Inc (NYSE:XPO) and began trading on August 2, 2021.

* Price Action: GXO shares are closed higher 2.61% at $79.06, and XPO higher by 2.16% at $86.62 on Monday.