RXO Inc. price target lowered to $22 from $23 at Oppenheimer

Oppenheimer analyst Scott Schneeberger lowered the firm’s price target on RXO Inc. to $22 from $23 and keeps an Outperform rating on the shares. The firm notes RXO’s Q4 adjusted EBITDA was in line with expectations. In an environment of macroeconomic-related declining brokerage industry volumes, Truck Brokerage, RXO’s largest segment, delivered 15% volume growth year-over-year in Q4. RXO anticipates positive volume growth again in Q1 2024. However, Truck Brokerage segment margin compression is expected to continue in Q1 2024. RXO also guided Q1 2024 total company adjusted EBITDA of $12M-$18M, which was below expectations, Oppenheimer says. The firm views RXO positioning itself for an ultimate market rebound, which could begin to materialize in the second half of 2024-2025.