What Happened?
Shares of freight Delivery Company RXO (NYSE: RXO) jumped 5% in the afternoon session after a UBS analyst raised the company's price target to $17 from $15.
The analyst, Thomas Wadewitz, kept a "Neutral" rating on the stock despite the price target increase. This adjustment represented a 13.33% rise in the analyst's valuation. The move came as broader European stock markets also recorded strong gains. The general sentiment among analysts for RXO remained cautious, with a consensus "Hold" rating based on the views of multiple financial experts.
Is now the time to buy RXO? Access our full analysis report here.
What Is The Market Telling Us
RXO’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock dropped 7.2% on the news that President Trump criticized the Federal Reserve's approach to interest rate cuts, warning that the pace was slow and could hinder economic growth.
Trump's comments added pressure to an already sensitive market, raising concerns about political interference in monetary policy. Meanwhile, Fed Chair Jerome Powell maintained a cautious stance the previous week, highlighting the difficulty of balancing the dual mandate of steady employment and price stability amid the escalating trade tension. Investor sentiment was further dampened by the absence of constructive progress in trade negotiations, especially US-China relations which took a turn for the worse in the previous week. Overall, the outlook seemed more unclear heading into the first quarter 2025 earnings season, as a combination of hard to predict monetary policy and unresolved trade tensions weighed on business confidence.
RXO is down 29% since the beginning of the year, and at $16.80 per share, it is trading 47.3% below its 52-week high of $31.90 from November 2024. Investors who bought $1,000 worth of RXO’s shares at the IPO in October 2022 would now be looking at an investment worth $800.00.
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