Jason Seidl, an analyst from TD Cowen, reiterated the Hold rating on RXO, Inc. (RXO – Research Report). The associated price target is $16.50.
Jason Seidl has given his Hold rating due to a combination of factors. RXO Inc.’s Q3 results, while in line with expectations, were indicative of a persistently soft market that continues to pressure margins. Despite an 18% increase in brokerage volume for the quarter, consolidated revenues decreased by 14% year-on-year. This decline, however, was moderated sequentially due to the growth in brokerage volume. The company’s weakness in freight markets remained evident as adjusted EBITDA margins decreased.
Further, RXO Inc. experienced a muted peak season, as predicted, and showed slower growth in October volumes. Looking ahead, the outlook remains subdued with spot rates staying at trough levels. On a positive note, RXO expects adjusted EBITDA to grow sequentially in Q4, a traditionally strong period for the company. However, Jason Seidl anticipates pressure in early 2024 as the truckload (TL) market is expected to inflect in the second half of 2024. Given these circumstances, he has adjusted the price target to $16.50.
According to TipRanks, Seidl is a top 25 analyst with an average return of 23.5% and a 68.75% success rate. Seidl covers the Industrials sector, focusing on stocks such as Old Dominion Freight, TFI International, and CH Robinson.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
RXO, Inc. (RXO) Company Description:
RXO Inc is a leading provider of asset-light transportation in North America.
Read More on RXO:
