Ravi Shanker, an analyst from Morgan Stanley, maintained the Buy rating on RXO, Inc.. The associated price target remains the same with $19.00.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Ravi Shanker has given his Buy rating due to a combination of factors that balance near‑term weakness with improving medium‑term prospects. While RXO’s recent quarter and first‑quarter guidance were weaker than the market expected, he views this early‑cycle pressure on margins and earnings as already understood and largely reflected in the share price.
He highlights management’s more constructive outlook for the second half, supported by a sharply larger late‑stage brokerage pipeline, tight truckload capacity, and anticipated efficiency gains from RXO’s AI initiatives. Based on these drivers, he believes RXO can reach at least $1 of normalized EPS, implying a valuation in the high‑teens per share, with even more upside if the integration of Coyote and AI productivity gains are fully realized.
According to TipRanks, Shanker is a 3-star analyst with an average return of 1.0% and a 50.91% success rate. Shanker covers the Industrials sector, focusing on stocks such as Delta Air Lines, FedEx, and JetBlue Airways.