TD Cowen analyst Jason Seidl has reiterated their neutral stance on RXO stock, giving a Hold rating today.
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Jason Seidl has given his Hold rating due to a combination of factors affecting RXO, Inc.’s current financial performance and outlook. The company missed its EBITDA consensus in the third quarter and has lowered expectations for the fourth quarter, citing weaker than expected seasonal performance and pressure on gross margins. Despite some strength in certain segments, like LTL, the overall market conditions remain challenging, with truck brokerage volumes expected to decline.
RXO is facing tightening capacity in the TL market, which is impacting gross margins as the company struggles with buy rate pressure without corresponding revenue growth. Management’s focus on cost-saving measures reflects caution regarding the outlook for 2026, as persistent margin pressures could overshadow these efforts. While regulatory changes may eventually benefit RXO’s operating environment, the near-term outlook remains uncertain, justifying the Hold rating as the company awaits a potential demand recovery.
In another report released today, Bank of America Securities also maintained a Hold rating on the stock with a $16.00 price target.