.September 17, 2024 at 3:41 PM

Oppenheimer analysts reiterated an Outperform rating on RXO (NYSE:RXO) with a price target of $31 following RXO’s acquisition of Coyote Logistics, making it the third-largest truck broker in North America. The acquisition doubles RXO’s carrier base and expands its customer portfolio to include more small and medium-sized clients, as well as the Food & Beverage and Transportation sectors. The deal also presents operational synergies, and RXO’s use of equity financing reduces its net debt to EBITDA ratio to below 2x.

Despite challenges in the transportation sector, analysts believe RXO is managing expenses effectively and expect adjusted EBITDA to recover after a Q2/24 trough.