TD Cowen raises RXO stock price target to $16 on LTL strength

Published 07/08/2025, 22:02
TD Cowen raises RXO stock price target to $16 on LTL strength

Investing.com - TD Cowen has raised its price target on RXO, Inc. (NYSE:RXO) to $16.00 from $15.00 while maintaining a Hold rating on the stock. The freight transportation company, currently valued at $2.5 billion, has seen its shares decline 35% year-to-date according to InvestingPro data.

The freight transportation company exceeded expectations in the second quarter, with less-than-truckload (LTL) strength and Last Mile services driving the performance, according to TD Cowen. While truckload volumes trended lower during the period, InvestingPro data shows impressive revenue growth of 32% in the last twelve months, with analysts expecting continued sales growth this year.

RXO’s third-quarter guidance at the midpoint suggests a similar performance sequentially and does not assume volume improvement beyond July levels, as peak season remains uncertain.

TD Cowen observed that the integration of Coyote Logistics and associated synergies are progressing, though these improvements are not yet reflected in the company’s profitability metrics.

The price target increase represents a $1.00 upward revision from the previous target of $15.00, while the Hold rating on RXO stock remains unchanged.

In other recent news, RXO Inc reported its second-quarter 2025 earnings, which showed an earnings per share (EPS) of $0.04. This figure was significantly below the analysts’ forecast of $0.22, marking an 81.82% miss. Despite the EPS shortfall, the company’s revenue reached $1.4 billion, aligning with expectations. However, the revenue alignment did not offset the impact of the EPS miss on investor sentiment. The earnings miss is a crucial development for investors to consider. The results come amid a backdrop of various economic factors impacting the industry. These recent developments are important for investors to keep in mind as they evaluate the company’s performance.

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