Jason Seidl, an analyst from TD Cowen, reiterated the Hold rating on RXO, Inc. (RXO – Research Report). The associated price target is $15.00.
Jason Seidl has given his Hold rating due to a combination of factors affecting RXO, Inc.’s current financial performance and market conditions. The company reported an EBIT loss in the first quarter, reflecting challenges in the brokerage market, with trends in April indicating potential further declines. Despite having some liquidity, RXO’s performance is heavily influenced by the truckload market, which remains volatile.
Additionally, RXO’s adjusted EBITDA for the first quarter was slightly below expectations, and the company’s revenue missed estimates. While RXO has integrated Coyote’s carrier base, which could lead to synergies, the benefits are not yet fully realized. The LTL business has shown growth, but overall, the company’s guidance suggests potential weaknesses ahead, particularly with freight rates under pressure. These factors contribute to the cautious outlook and the decision to maintain a Hold rating.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $23.00 price target.