RXO (NYSE:RXO) Given New $24.00 Price Target at Citigroup

Key Points

• Citigroup raised its price target on RXO from $17 to $24 while keeping a neutral rating, implying about 10% upside from the previous close.
• Other analysts also boosted targets after RXO’s latest results, but sentiment remains cautious overall: the consensus rating is Reduce with an average price target of $19.
• RXO’s recent quarter showed mixed fundamentals: it met EPS expectations, beat revenue estimates, and management gave a stronger Q2 outlook, but the company still posted a loss and revenue was slightly down year over year.

RXO (NYSE:RXO - Get Free Report) had its price objective lifted by research analysts at Citigroup from $17.00 to $24.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has a "neutral" rating on the stock. Citigroup's target price points to a potential upside of 10.10% from the stock's previous close.

Other research analysts also recently issued research reports about the company. Susquehanna lifted their price objective on RXO from $14.00 to $18.00 and gave the stock a "negative" rating in a report on Friday. TD Cowen lifted their price objective on RXO from $14.00 to $21.00 and gave the stock a "hold" rating in a report on Friday. Benchmark reiterated a "hold" rating on shares of RXO in a report on Monday, February 9th. Morgan Stanley reiterated an "equal weight" rating and issued a $22.00 price objective (up from $19.00) on shares of RXO in a report on Thursday. Finally, Stifel Nicolaus set a $15.00 price objective on RXO in a report on Thursday, February 5th. Two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus price target of $19.00.

RXO Price Performance

NYSE RXO traded down $1.31 during trading hours on Friday, reaching $21.80. 2,559,697 shares of the stock traded hands, compared to its average volume of 2,276,456. The stock has a 50 day simple moving average of $15.96 and a two-hundred day simple moving average of $15.01. RXO has a 1 year low of $10.43 and a 1 year high of $23.37. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.27 and a quick ratio of 1.27. The company has a market cap of $3.59 billion, a price-to-earnings ratio of -37.58, a price-to-earnings-growth ratio of 35.08 and a beta of 1.96.

RXO (NYSE:RXO - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.09) EPS for the quarter, hitting the consensus estimate of ($0.09). The firm had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.34 billion. RXO had a negative return on equity of 0.44% and a negative net margin of 1.74%.The company's quarterly revenue was down .6% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.03) earnings per share. On average, analysts predict that RXO will post 0.02 EPS for the current fiscal year.

Institutional Trading of RXO

Several large investors have recently modified their holdings of the business. Orbis Allan Gray Ltd grew its stake in shares of RXO by 6.5% in the fourth quarter. Orbis Allan Gray Ltd now owns 34,677,755 shares of the company's stock worth $438,327,000 after purchasing an additional 2,104,597 shares during the last quarter. Vanguard Group Inc. grew its stake in shares of RXO by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 17,309,811 shares of the company's stock worth $218,796,000 after purchasing an additional 93,130 shares during the last quarter. Wellington Management Group LLP grew its stake in shares of RXO by 7.9% in the third quarter. Wellington Management Group LLP now owns 9,998,681 shares of the company's stock worth $153,780,000 after purchasing an additional 735,810 shares during the last quarter. Finepoint Capital LP bought a new stake in shares of RXO in the third quarter worth about $111,764,000. Finally, State Street Corp grew its stake in shares of RXO by 3.7% in the fourth quarter. State Street Corp now owns 6,370,232 shares of the company's stock worth $80,520,000 after purchasing an additional 230,053 shares during the last quarter. 92.73% of the stock is owned by institutional investors.

Key Stories Impacting RXO

Here are the key news stories impacting RXO this week:

• Positive Sentiment: RXO reported Q1 adjusted results that matched EPS expectations and beat revenue estimates, helping ease concerns about demand trends and Amazon-related weakness. RXO Announces First-Quarter Results and Second-Quarter Outlook
• Positive Sentiment: The company’s Q2 outlook also topped Street expectations, with management projecting $27 million to $37 million in adjusted EBITDA and saying contract rates are trending toward high-single-digit gains. RXO expects $27M-$37M Q2 adjusted EBITDA...
• Positive Sentiment: Management said brokerage momentum is improving, full truckload volume strengthened through the quarter, and higher spot mix should support margins going forward. RXO raises contract rate outlook as Q2 profit seen higher
• Neutral Sentiment: Analysts raised price targets after the report, with TD Cowen lifting its target to $21 and Susquehanna increasing its target to $18, but both firms kept cautious ratings. Analyst updates on RXO
• Negative Sentiment: RXO still posted a quarterly loss, and revenue was slightly down year over year, so investors remain focused on whether improved pricing and volume can translate into sustained profitability. RXO Reports Q1 Loss...

About RXO

RXO Inc NYSE: RXO is a leading asset-light provider of digital freight brokerage and managed transportation solutions. The company leverages a proprietary technology platform to connect shippers with a network of third-party carriers, enabling optimized route planning, real-time shipment tracking, and dynamic pricing. RXO’s end-to-end service model spans full truckload, less-than-truckload (LTL), intermodal and cross-border freight movements, designed to improve efficiency and reduce transportation costs for its customers.

Operating primarily across North America, RXO serves a diverse base of shippers in industries ranging from retail and consumer goods to manufacturing and automotive.

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