
RXO Inc (RXO) Stock Forecast & Price Target
RXO Inc (RXO) Analyst Ratings
Bulls say
RXO Inc's integration of Coyote is progressing ahead of schedule, with the annual run-rate cost synergy target increased by $10 million to $50 million, indicating enhanced operational efficiency. The company's gross margin has improved to 21.1%, demonstrating resilience in a challenging market and supporting a stable financial outlook. Additionally, RXO's Last Mile segment is experiencing growth, with a 15% year-over-year increase in stops, suggesting an expanding market share in the growing big and bulky transportation sector.
Bears say
RXO Inc has experienced a 6% year-over-year decline in volume on a pro forma basis, accompanied by unit gross profits that failed to meet expectations, suggesting pressures on operational efficiency. The company's segment gross margin of 13.2% is 30 basis points below expectations and indicates a deteriorating profitability scenario, exacerbated by challenges stemming from the Coyote acquisition and customer mix. Furthermore, anticipated gross margin squeezes in the upcoming fourth quarter and typical seasonal weaknesses in the first quarter have led to reduced estimates for EBITDA and EPS through fiscal year 2025, indicating a need for a reassessment of earnings expectations in light of ongoing challenges.
This aggregate rating is based on analysts' research of RXO Inc and is not a guaranteed prediction by Public.com or investment advice.
RXO Inc (RXO) Analyst Forecast & Price Prediction
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