Wells Fargo analyst Christian Wetherbee initiates coverage on $RXO Inc (RXO.US)$ with a hold rating, and sets the target price at $31.
According to TipRanks data, the analyst has a success rate of 60.4% and a total average return of 14.1% over the past year.
Furthermore, according to the comprehensive report, the opinions of $RXO Inc (RXO.US)$'s main analysts recently are as follows:
Although RXO Inc.'s acquisition of Coyote in September enhanced its scale and capabilities within the freight brokerage sector, the benefits of increased size, scale, and market presence among carriers and shippers may have already been anticipated by investors. Analysts are observing from the sidelines, awaiting further evidence from the company's management regarding the realization of synergies and the consistent generation of free cash flow.
The initiation of coverage on RXO Inc. acknowledges the potential value stemming from the Coyote acquisition. However, there is a note of caution regarding the persistent estimate risk that may act as a headwind, and the observation that brokerage tends to show improved performance following the initial cycle turn, which could be approaching. A prevalent issue in the Transports sector is the presence of elevated consensus estimates, which may also be a risk for RXO.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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