RXO Inc. initiated with a Neutral at JPMorgan

JPMorgan analyst Brian Ossenbeck initiated coverage of RXO Inc. with a Neutral rating and $19 price target. RXO has pivoted through the truckload rate cycle better than peers and the company’s underlying digital freight platform is a factor in that success, Ossenbeck tells investors in a research note. However, 2023 will prove more challenging for truckload brokers as freight market conditions are more balanced and spreads between spot and contract rates normalize from the widest on record, says the analyst. He believes RXO shares are fairly valued compared to peers.