Morgan Stanley Lowers RXO PT to $21, Maintains Equal-Weight Rating

Morgan Stanley Lowers RXO PT to $21, Maintains Equal-Weight Rating

Morgan Stanley has updated its price target for RXO (RXO) shares to $21.00, down from the previous $22.00, while maintaining an equal-weight rating. This adjustment reflects the brokerage's reassessment of the company's earnings and revenue expectations, as well as the broader market conditions.

RXO shares have been experiencing volatility, with a 6.3% surge in the last trading session, and a 3.4% gain over the past four weeks. The stock's inclusion in the Russell 2000 Value Index has contributed to this upward trend. However, the consensus EPS estimate for the upcoming report has been revised 4.8% lower over the last 30 days, which could indicate a potential slowdown in price appreciation.

Morgan Stanley's updated price target and equal-weight rating suggest a cautious approach to RXO's prospects. The brokerage acknowledges the company's potential earnings and revenue growth but is mindful of the recent downward revision in earnings estimates. This change in outlook aligns with Morgan Stanley's broader market view, as the brokerage has recently lowered its price targets for several other stocks in the transportation services sector.

In conclusion, Morgan Stanley's revised price target for RXO reflects a balanced assessment of the company's recent performance and future prospects. While the stock's inclusion in the Russell 2000 Value Index has been a positive development, the downward revision in earnings estimates underscores the need for continued vigilance. Investors should closely monitor RXO's earnings reports and any updates from Morgan Stanley to gauge the stock's potential for further price appreciation.

References:
[1] https://finance.yahoo.com/news/rxo-rxo-surges-6-3-160100042.html
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3T104K:0-australia-s-pro-medicus-on-track-for-best-week-in-two-months-morgan-stanley-raises-pt/