RXO Inc. price target lowered to $25 from $31 at Oppenheimer

Oppenheimer lowered the firm’s price target on RXO Inc. (RXO) to $25 from $31 and keeps an Outperform rating on the shares. The firm notes RXO’s Q4 adjusted EBITDA of $42M was consistent with its estimate/consensus of $42M and the company’s guidance range of $40M-$45M. RXO anticipates Q1 2025 Brokerage volume down a mid-to-high single digit percentage year-over-year. Adjusted EBITDA guidance for Q1 2025 was $20M-$30M, which compares to prevailing consensus estimate of $30M. For full-year 2025, RXO expects Brokerage volume growth and contract rates to be up year-over-year. RXO indicated the integration of Coyote is progressing well and again increased its cost synergy target to at least $50M, from $40M previously and $25M originally, Oppenheimer adds.