Morgan Stanley has upgraded RXO Inc (RXO) to Overweight from Equal-Weight, a move that underscores a more favorable outlook on the company's prospects. This change, effective November 10, 2025, comes as RXO continues to navigate the competitive landscape of the road and rail industry, where it offers asset-light transportation solutions.
Currently priced at $12.18, RXO operates from its headquarters in Charlotte, North Carolina, employing nearly 10,000 full-time staff. The firm went public on October 27, 2022, and specializes in tech-enabled truck brokerage services, alongside managed transportation and last-mile delivery solutions. Its innovative RXO Connect digital brokerage platform integrates a range of functionalities, including Freight Optimizer and real-time tracking capabilities, enhancing efficiency in freight movement across North America.
The upgrade reflects a shift in analyst sentiment, which may suggest improved fundamentals or increased confidence in RXO's strategic direction. As of November 1, 2025, the analyst consensus on RXO stands at Hold, with 3 Strong Buy, 4 Buy, 16 Hold, 2 Sell, and 1 Strong Sell ratings among a total of 26 analysts.
Investors should consider that analyst ratings are based on research and financial models, and can change as new information becomes available. Upcoming earnings reports on May 4, 2026, and August 4, 2026, are anticipated to shed further light on the company's financial performance, with estimated EPS of $0.01 and $0.11, respectively.
Recent earnings have shown volatility, with Q3 2025 reporting an EPS of $0.01, falling short of expectations, while Q2 2025 exceeded estimates with an EPS of $0.04. Such mixed results highlight the importance of evaluating multiple factors, including company fundamentals and industry trends, when considering investment decisions.