Analyst Christian Wetherbee from Wells Fargo maintained a Hold rating on RXO, Inc. (RXO – Research Report) and keeping the price target at $15.00.
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Christian Wetherbee has given his Hold rating due to a combination of factors surrounding RXO, Inc.’s current market position and future prospects. The company has shown stable demand quarter-to-date and is benefiting from cost synergies following the integration of Coyote’s operations. However, the overall freight market outlook remains uncertain, which poses a risk to RXO’s ability to achieve its high-end EBITDA guidance for the second quarter.
Additionally, while RXO is seeing improvements in supply and demand dynamics, the demand has not yet reached levels that would significantly boost spot load movements. The company is encouraged by capacity reductions but acknowledges that demand needs to increase to drive more substantial growth. These mixed signals in the market environment contribute to the Hold rating, suggesting that while there are positive developments, uncertainties still linger, warranting a cautious approach.
According to TipRanks, Wetherbee is a 5-star analyst with an average return of 11.1% and a 58.05% success rate. Wetherbee covers the Industrials sector, focusing on stocks such as XPO, Norfolk Southern, and Union Pacific.