NYSE:RXO

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RXO (RXO) Stock Rises After Stifel Raises Price Target to $30

RXO, Inc. (NYSE: RXO) shares gained about 4.1% after Stifel raised its price target on the freight transportation and logistics company to $30 from $22 while maintaining its Buy rating.

The higher price target reflects growing confidence in RXO's long-term outlook as freight markets gradually recover and demand for outsourced transportation and logistics services improves. Investors have also become more optimistic about the company's ability to enhance profitability through operational efficiencies and the continued expansion of its technology-enabled brokerage platform.

RXO remains well positioned to benefit from an eventual rebound in freight volumes, supported by its asset-light business model and investments in digital logistics solutions. Improving industry conditions and stronger shipment activity could provide additional upside for earnings over time.

Key factors supporting the stock include:

* Stifel raised its price target to $30 from $22.
* The firm maintained its Buy rating.
* Investors remain optimistic about a gradual recovery in freight demand and improving logistics market conditions.
* RXO's technology-driven brokerage platform and focus on operational efficiency support its long-term growth outlook.

The higher price target strengthened investor sentiment, helping RXO shares advance during the trading session.
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Author
WS Investor 07-13-26
RXO has announced its financial results for the fourth quarter of 2024, highlighting progress in the integration of Coyote Logistics and growth across key business segments.

The company reported revenue of $1.7 billion, up from $1.0 billion in the same quarter of 2023. Despite a GAAP net loss of $20 million, which included $34 million in transaction, integration, and restructuring costs, adjusted net income rose to $10 million from $7 million a year ago. Adjusted EBITDA increased to $42 million, compared to $31 million in the fourth quarter of 2023.

CEO Drew Wilkerson emphasized that the integration of Coyote Logistics remains ahead of schedule, with projected cost synergies now raised to at least $50 million. He highlighted RXO’s sequential brokerage volume growth of 10%, the nearly $2 billion in new freight under management within Managed Transportation, and a 15% year-over-year increase in Last Mile stops.

In the Brokerage segment, volume declined by 6% year-over-year, with less-than-truckload volume rising by 1% but full truckload volume falling by 8%. However, sequential growth remained strong at 10%. Brokerage gross margin stood at 13.2%.

The company expects first-quarter 2025 adjusted EBITDA to be between $20 million and $30 million, with Brokerage gross margin projected between 12% and 14%.
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Author
WS News 02-05-25