In a report released today, Jason Seidl from TD Cowen reiterated a Hold rating on RXO, Inc., with a price target of $14.00.
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Jason Seidl has given his Hold rating due to a combination of factors related to RXO’s near‑term earnings outlook and market conditions. He reduced his forecasts for both the fourth quarter and the full year, reflecting persistent softness in the truckload brokerage market, which he believes will cap the company’s performance over the medium term. Additionally, he now expects fourth-quarter EBITDA to come in below management’s guidance, primarily because tighter spot market conditions are putting pressure on gross margins. These dynamics suggest limited upside potential in the short run.
At the same time, Seidl maintained his $14 price target, indicating that while he sees challenges, he does not view the stock as significantly over- or undervalued at current levels. The combination of constrained earnings potential, margin headwinds, and a valuation that appears roughly fair justifies his decision to stay on the sidelines with a Hold rating rather than move to a more bullish or bearish stance. Overall, his view is that investors may need to wait for clearer signs of improvement in brokerage fundamentals before a more constructive rating would be warranted.
In another report released on January 9, Bank of America Securities also maintained a Hold rating on the stock with a $16.00 price target.