Truist Reaffirms Buy on RXO, Calls It a Top Freight Recovery Play

Truist Securities is maintaining its Buy rating and $18 price target on RXO (NYSE:RXO) highlighting the company’s strong positioning for long-term upside despite near-term freight market softness.

With the potential for over 60% upside based on a mid-cycle valuation of 10–11x EBITDA, RXO is viewed as a significantly undervalued opportunity. The firm sees substantial progress on synergy realization from its Coyote acquisition, as well as clear avenues for margin expansion and improved free cash flow.

Truist believes RXO is building a fully integrated logistics platform, gaining momentum across key segments such as Less-Than-Truckload (LTL), Last Mile delivery, and Managed Transportation. While freight volumes remain subdued due to broader macro pressures, the company is executing well on cost control, operational productivity, and integration targets.

Analysts argue that RXO is laying the foundation for strong earnings leverage and cash flow growth once the freight cycle turns, positioning it as one of the most compelling recovery plays in the logistics sector.