RXO Inc. initiated with a Neutral at UBS

UBS analyst Thomas Wadewitz initiated coverage of RXO Inc. with a Neutral rating and $20 price target. The analyst says brokerage revenue growth of 63% in 2021 shows RXO has traction with its growth strategy. However, the challenging truckload market backdrop of falling contract rates is likely to cause a meaningful decline in net revenue and EBITDA for RXO in 2023, which is a headwind for the stock, Wadewitz tells investors in a research note.