RXO Inc. initiated with an Equal Weight at Morgan Stanley

Morgan Stanley analyst Ravi Shanker initiated coverage of RXO Inc. with an Equal Weight rating and $20 price target. RXO has demonstrated strong growth, margins, technology leadership and productivity in the last upcycle but the market remains unconvinced whether this is cyclical or structural, Shanker tells investors in a research note. The analyst says that while the stock’s risk/reward is better than direct peers, it is "close to fair value."