Wells Fargo analyst Christian Wetherbee has maintained their neutral stance on RXO stock, giving a Hold rating yesterday.
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Christian Wetherbee has given his Hold rating due to a combination of factors including RXO, Inc.’s slight outperformance in the fourth quarter of 2024, where adjusted EPS was marginally above expectations. The company’s brokerage net revenue and margins exceeded targets, contributing to this performance. However, the guidance for the first quarter of the following year aligns with the higher end of consensus but reflects challenges related to the business cycle and deal value realization.
Despite the adjusted EPS beating both internal and consensus estimates, the adjusted EBITDA guidance, although capturing recent estimates, appears low when considering the context of the Coyote transaction. The synergies from the Coyote deal are noted, but the overall outlook remains cautious, leading to the Hold recommendation as investors are advised to consider these factors in their decision-making process.
According to TipRanks, Wetherbee is a 5-star analyst with an average return of 12.2% and a 58.91% success rate. Wetherbee covers the Industrials sector, focusing on stocks such as Old Dominion Freight, ArcBest, and GXO Logistics.
In another report released yesterday, TD Cowen also reiterated a Hold rating on the stock with a $21.00 price target.