Gold prices edge up amid Fed rate cut hopes; US-Russia talks awaited
Investing.com - BofA Securities has reduced its price target on RXO, Inc. (NYSE:RXO) to $16.00 from $18.00 while maintaining a Neutral rating on the stock. The stock, currently trading at $14.78, has declined nearly 49% over the past year, according to InvestingPro data, with analyst targets ranging from $11 to $21.
The firm’s adjustment comes as RXO targets third-quarter 2025 adjusted EBITDA of $33-$43 million, with the midpoint flat compared to second-quarter 2025’s $38 million. BofA has revised its own estimate to $39 million from $41 million previously. InvestingPro analysis shows the company’s current EV/EBITDA multiple of 25x is notably high, with several additional valuation insights available to subscribers.
RXO expects third-quarter performance to outpace normal seasonality, as second-quarter to third-quarter adjusted EBITDA typically declines 15%-30%. The company anticipates improved Truck Brokerage profitability and lower expenses will offset a sequential decline in Last Mile operations. Despite recent challenges, InvestingPro data shows strong revenue growth of 32.4% in the last twelve months, with analysts expecting continued growth this year. Get access to the full RXO Research Report and 1,400+ other company analyses with an InvestingPro subscription.
For third-quarter 2025, RXO targets Brokerage Gross margins of 13.5%-15%, compared to 14.4% in the second quarter. The company is also reducing its cost base, expecting SG&A to decrease slightly sequentially, and has lowered its full-year stock-based compensation guidance to $28 million-$32 million from $30 million-$35 million.
RXO reported that truckload volumes fell 12% year-over-year, attributed to efforts to optimize price, volume, and service, as well as softness in auto markets. Meanwhile, less-than-truckload volumes increased 45% year-over-year, representing 32% of volumes—its highest ever contribution, with RXO targeting a 50% LTL contribution long term. The company’s revenue reached $5.07 billion in the last twelve months, though it remains unprofitable during this period.
In other recent news, RXO Inc reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.04, versus the consensus of $0.03. The company’s revenue reached $1.4 billion, meeting expectations. Additionally, TD Cowen raised its price target for RXO Inc to $16.00 from $15.00, while maintaining a Hold rating on the stock. The firm highlighted the company’s strength in less-than-truckload (LTL) services and Last Mile services as key drivers of performance. However, they noted that truckload volumes trended lower during the period. These developments provide investors with a mixed view of RXO Inc’s recent performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.