Oppenheimer Reiterates Outperform on RXO After Coyote Logistics Acquisition
Oppenheimer analysts reiterated an Outperform rating on RXO (NYSE:RXO) with a price target of $31 on the stock. This comes after RXO's recent acquisition of Coyote Logistics, which positions the company as the third-largest truck broker in North America. The acquisition nearly doubles RXO's carrier base and broadens its customer portfolio by expanding into more small and medium-sized clients, as well as the Food & Beverage and Transportation sectors.
Additionally, the deal presents operational synergies, and RXO’s use of equity financing for the acquisition reduces its net debt to EBITDA ratio to below 2x.
Despite ongoing challenges in the transportation sector, the analysts believe RXO is effectively managing its expenses and expects adjusted EBITDA to recover after a Q2/24 trough.
| Symbol | Price | %chg |
|---|---|---|
| MAHA.JK | 145 | 0 |
| 9064.T | 1974.5 | 0 |
| 9076.T | 2206 | 0 |
| 9075.T | 3500 | 0 |
Truist Reaffirms Buy on RXO, Calls It a Top Freight Recovery Play
Truist Securities is maintaining its Buy rating and $18 price target on RXO (NYSE:RXO) highlighting the company’s strong positioning for long-term upside despite near-term freight market softness.
With the potential for over 60% upside based on a mid-cycle valuation of 10–11x EBITDA, RXO is viewed as a significantly undervalued opportunity. The firm sees substantial progress on synergy realization from its Coyote acquisition, as well as clear avenues for margin expansion and improved free cash flow.
Truist believes RXO is building a fully integrated logistics platform, gaining momentum across key segments such as Less-Than-Truckload (LTL), Last Mile delivery, and Managed Transportation. While freight volumes remain subdued due to broader macro pressures, the company is executing well on cost control, operational productivity, and integration targets.
Analysts argue that RXO is laying the foundation for strong earnings leverage and cash flow growth once the freight cycle turns, positioning it as one of the most compelling recovery plays in the logistics sector.
Oppenheimer Reiterates Outperform on RXO After Coyote Logistics Acquisition
Oppenheimer analysts reiterated an Outperform rating on RXO (NYSE:RXO) with a price target of $31 on the stock. This comes after RXO's recent acquisition of Coyote Logistics, which positions the company as the third-largest truck broker in North America. The acquisition nearly doubles RXO's carrier base and broadens its customer portfolio by expanding into more small and medium-sized clients, as well as the Food & Beverage and Transportation sectors.
Additionally, the deal presents operational synergies, and RXO’s use of equity financing for the acquisition reduces its net debt to EBITDA ratio to below 2x.
Despite ongoing challenges in the transportation sector, the analysts believe RXO is effectively managing its expenses and expects adjusted EBITDA to recover after a Q2/24 trough.
