BMO Capital Starts RXO, Inc. (RXO) at Outperform, 'Well Positioned To Leverage TL Market Tightening'
BMO Capital analyst Fadi Chamoun initiates coverage on RXO, Inc. (NYSE: RXO) with a Outperform rating and a price target of $35.00.
The analyst comments "Initiating coverage of RXO at Outperform and a $35 price target. TL market tightness is back near prior-cycle peak levels, while AGP/load—which typically lags by three-to-four quarters—remains 60% below its prior peak. With a platform now handling more than 2x prior-cycle peak volumes and meaningful productivity gains, we see a path to ~$600 million of EBITDA this cycle. Upside to our base case could come from a higher peak multiple than our 10x assumption and a strong free cash flow outlook that supports accretive M&A optionality."
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Shares of RXO, Inc. closed at $26.25 yesterday.