RXO (NYSE:RXO) Price Target Raised to $18.00 at Susquehanna

Key Points

• Susquehanna raised its price target on RXO to $18.00 (from $14.00) but kept a "negative" rating, with the new target implying roughly a 21.7% downside from the prior close.
• RXO beat Q1 revenue estimates ($1.43B vs. ~$1.34B) and issued an upbeat Q2 outlook calling for $27M–$37M in adjusted EBITDA and contract rates trending to high-single-digit gains, signaling potential near-term profitability improvement.
• However, GAAP metrics remain weak (Q1 EPS -$0.09) and the CEO warned earnings are "nowhere near normalized," leaving the stock dependent on execution; analysts' consensus is a "Reduce" rating with an average price target of about $17.85.

RXO (NYSE:RXO - Get Free Report) had its target price raised by research analysts at Susquehanna from $14.00 to $18.00 in a report issued on Friday,Benzinga reports. The firm currently has a "negative" rating on the stock. Susquehanna's target price would suggest a potential downside of 21.67% from the company's previous close.

A number of other brokerages also recently issued reports on RXO. Zacks Research raised shares of RXO from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Stifel Nicolaus set a $15.00 price objective on shares of RXO in a research report on Thursday, February 5th. Truist Financial lifted their price objective on shares of RXO from $18.00 to $20.00 and gave the stock a "buy" rating in a research report on Monday, February 9th. UBS Group reaffirmed a "neutral" rating on shares of RXO in a research report on Sunday, February 8th. Finally, Barclays reaffirmed an "overweight" rating and issued a $20.00 price objective on shares of RXO in a research report on Friday. Two equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, RXO has an average rating of "Reduce" and a consensus price target of $17.85.

RXO Trading Down 0.6%

NYSE RXO opened at $22.98 on Friday. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.27 and a current ratio of 1.27. The company has a market capitalization of $3.78 billion, a price-to-earnings ratio of -39.63, a price-to-earnings-growth ratio of 35.08 and a beta of 1.96. The company's 50-day simple moving average is $15.96 and its two-hundred day simple moving average is $15.01. RXO has a one year low of $10.43 and a one year high of $23.37.

RXO (NYSE:RXO - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported ($0.09) EPS for the quarter, meeting analysts' consensus estimates of ($0.09). The business had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.34 billion. RXO had a negative net margin of 1.74% and a negative return on equity of 0.44%. The company's revenue for the quarter was down .6% on a year-over-year basis. During the same quarter last year, the firm posted ($0.03) EPS. Equities analysts forecast that RXO will post 0.02 EPS for the current fiscal year.

Institutional Trading of RXO

Large investors have recently bought and sold shares of the stock. Principal Financial Group Inc. grew its position in RXO by 11.8% during the 3rd quarter. Principal Financial Group Inc. now owns 791,799 shares of the company's stock worth $12,178,000 after purchasing an additional 83,305 shares during the last quarter. Finepoint Capital LP purchased a new stake in RXO during the 3rd quarter worth approximately $111,764,000. Cornerstone Wealth Group LLC purchased a new stake in RXO during the 3rd quarter worth approximately $4,026,000. Public Sector Pension Investment Board grew its position in RXO by 31.6% during the 3rd quarter. Public Sector Pension Investment Board now owns 639,606 shares of the company's stock worth $9,837,000 after purchasing an additional 153,468 shares during the last quarter. Finally, Vanguard Group Inc. grew its position in RXO by 1.4% during the 3rd quarter. Vanguard Group Inc. now owns 17,216,681 shares of the company's stock worth $264,793,000 after purchasing an additional 233,434 shares during the last quarter. Hedge funds and other institutional investors own 92.73% of the company's stock.

Key RXO News

Here are the key news stories impacting RXO this week:

• Positive Sentiment: Company issued upbeat Q2 outlook — RXO expects $27M–$37M in adjusted EBITDA and said contract rates are trending to high-single-digit gains, a clear near-term profitability signal for investors. RXO expects $27M-$37M Q2 adjusted EBITDA
• Positive Sentiment: Q1 revenue topped Street estimates ($1.43B vs. ~$1.34B expected) and management emphasized improving truckload volumes and a stronger brokerage sales pipeline — supporting the outlook and prompting investor relief. RXO Announces First-Quarter Results and Second-Quarter Outlook
• Positive Sentiment: Media coverage highlights a tech turnaround and that earnings/guidance helped allay Amazon-related competitive concerns — narrative that can sustain multiple expansion as investors price in execution on the tech stack and brokerage growth. RXO’s tech turnaround: why investors are watching
• Neutral Sentiment: Reported EPS of ($0.09) matched consensus, and some outlets characterize the quarter as a miss on profitability but a beat on revenue — a mixed print that leaves valuation sensitive to execution on guidance. RXO (RXO) Reports Q1 Loss, Tops Revenue Estimates
• Negative Sentiment: CEO Drew Wilkerson warned “we're still nowhere near normalized earnings,” underscoring that margin recovery is incomplete and that investors should expect more operating volatility before sustainable profits. We're still nowhere near normalized earnings right now, says RXO CEO Drew Wilkerson
• Negative Sentiment: GAAP metrics remain weak: EPS declined year-over-year (from -$0.03 to -$0.09) and net margin stayed negative, leaving the stock dependent on successful execution of the guidance and margin improvement. RXO misses first-quarter estimates but stock gains 3% on outlook

RXO Company Profile

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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