JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Friday, Truist Securities adjusted its outlook on RXO, Inc. (NYSE:RXO), reducing the company’s price target from $19.00 to $18.00, while reaffirming a Buy rating on the stock. The revision reflects a cautious stance on the freight company’s near-term prospects amid ongoing industry softness, despite recognizing its solid execution on various fronts. According to InvestingPro data, RXO’s stock has declined over 51% in the past six months, currently trading at $14.47, with analyst targets ranging from $10 to $25.
Lucas Servera of Truist Securities expressed confidence in RXO’s ability to build long-term earnings power. He noted that while the firm has lowered its 2026 earnings estimate, the 2025 projection remains unchanged. While InvestingPro data shows the company isn’t currently profitable, analysts expect positive earnings this year, with an EPS forecast of $0.20 for 2025. Servera pointed out that RXO has been successful in realizing synergies, improving margins, and integrating technology effectively into its operations.
The completion of carrier migration marks a significant milestone for RXO, according to Servera. He anticipates that the benefits of the company’s Comprehensive Outsourced Pricing Tool (COPT) will soon become apparent. Truist Securities expects these advancements, coupled with robust growth in less-than-truckload (LTL) volumes—a segment known for higher margins—to position RXO favorably for scaling earnings when the market recovers.
Servera’s commentary underscores RXO’s strategic initiatives and operational enhancements that are expected to contribute to the company’s resilience and growth potential. Despite the downward adjustment in the price target, the Buy rating suggests a positive outlook on the stock’s future performance.
RXO’s focus on synergy realization and margin improvement, as well as its commitment to technological integration, are seen as key drivers that could help the company navigate through the current freight market challenges. With a gross profit margin of 16.84% and revenue growth of 32.38% in the last twelve months, the company shows promising operational metrics. Truist Securities’ updated price target reflects a balance between near-term headwinds and the longer-term earnings trajectory for RXO. For deeper insights into RXO’s valuation and growth prospects, including 10 additional ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, RXO Inc reported its Q1 2025 financial results, revealing a significant miss on both earnings per share (EPS) and revenue forecasts. The company posted an EPS of -$0.03, falling short of the expected $0.18, with total revenue reaching $1.4 billion. Brokerage revenue comprised a substantial portion, amounting to $1.1 billion. Despite these challenges, RXO achieved productivity improvements and maintained a strong contract versus spot mix. Looking forward, RXO anticipates Q2 adjusted EBITDA to range between $30-$40 million, with a low single-digit decline in brokerage volume but an expected improvement in gross profit per load. Analysts from Jefferies and Wells Fargo (NYSE:WFC) have shown interest in RXO’s strategies and potential synergies following the Coyote integration. The company has raised its estimate for acquisition synergies, now expecting more than $70 million in cash synergies, including operating expense and capital expenditures. RXO remains focused on optimizing purchase transportation costs to enhance profitability amidst a soft freight market.
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