2018-12-13 09:53:39 | Spruce Point calls XPO financials 'dubious,' sees up to 100% downside riskShort seller Spruce Point Management issued a "Strong Sell" rating on XPO Logistics, claiming the shares have 40%-60% intermediate term downside risk and 100% long-term downside risk. "Based on our forensic investigation, we believe XPO is executing an identical playbook to URI - resulting in financial irregularities that conveniently cover its growing financial strain and inability to complete additional acquisitions despite repeated promises," Spruce Point writes in a research report posted on its website. "Given its unreliable and dubious financials, $4.7 bn debt burden, inability to generate sustaining free cash flow, and dependency on external capital and asset sales, we have a worst-case terminal price target of zero," says the short seller. Shares of XPO Logistics are down 4%, or $2.34, to $57.94 in early trading. Reference Link |
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