Stifel upgraded RXO (NYSE:RXO) to Buy from Hold with a price target of $22.00, representing a 26% upside from the current $17.51.
Analyst J. Bruce Chen highlighted RXO's position at the intersection of improving brokerage fundamentals and healthy idiosyncratic levers heading into the balance of 2026.
While Q1 2026 results were soft, the analyst sees building blocks for recovery: stronger pricing discipline, largely complete integration, and expected margin expansion later this year.
A recent Supreme Court ruling caused share price pressure due to inflationary cost concerns, leading to a 19.5% decline over the past week. However, the stock remains up 61% over six months. Bond.az analysis indicates RXO appears undervalued at current levels.
Stifel believes the Court's ruling creates long-term opportunity for large brokers, and the sell-off offers a favorable entry point. Other analysts have mixed views: Morgan Stanley downgraded to Equalweight but raised its price target to $22.00.
RXO reported Q1 2026 adjusted loss per share of $0.09, missing estimates, with EBITDA of $6 million. The stock saw pre-market gains despite the earnings miss.
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