Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Barclays (LON:BARC) has reduced its price target on RXO, Inc. (NYSE:RXO) to $17.00 from $18.00 while maintaining an Overweight rating on the stock. Currently trading at $13.88, RXO has seen its stock decline nearly 39% year-to-date, though InvestingPro analysis suggests the stock is undervalued.
The adjustment comes as RXO continues to make operational progress with its 2024 Coyote acquisition, achieving expense reductions and purchased transportation synergies.
Despite these positive developments, Barclays notes that a tepid freight market is creating headwinds for the logistics company.
The firm specifically cited reduced throughput in automotive end markets as a factor likely to constrain RXO’s earnings potential in the second half of 2025.
Limited spot market opportunities were also identified as a challenge that could restrict earnings upside for RXO during the remainder of 2025.
In other recent news, RXO Inc reported its second-quarter 2025 earnings, with an earnings per share (EPS) of $0.04, falling short of the forecasted $0.22. The company’s revenue for the quarter was $1.4 billion, which met expectations but did not alleviate concerns stemming from the significant EPS miss. Additionally, BofA Securities lowered its price target for RXO to $16.00 from $18.00, maintaining a Neutral rating, due to a flat EBITDA outlook for the third quarter of 2025. BofA adjusted its EBITDA estimate to $39 million, down from $41 million. Meanwhile, TD Cowen raised its price target for RXO to $16.00 from $15.00, citing strong performance in less-than-truckload (LTL) and Last Mile services during the second quarter. Despite this, TD Cowen maintained a Hold rating on the stock, noting a decline in truckload volumes. These developments highlight the mixed sentiments surrounding RXO’s recent performance and future outlook.
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