RXO Inc. downgraded to Neutral at BofA on sustained margins pressure

BofA analyst Ken Hoexter downgraded RXO Inc. to Neutral from Buy with a price target of $22, down from $25. While the firm remains positive on RXO’s ability to gain share, it sees a sustained freight downcycle pressuring margins and sees margin headwinds persisting into the cycle upturn. The firm lowered its FY24 and FY25 EPS estimates by 82% and 41% to 10c and 60c, respectively, following the company’s Q4 report, the analyst noted.