Barclays raised the firm's price target on RXO Inc. to $28 from $20 and keeps an Overweight rating on the shares. The firm adjusted targets in the North America transportation group as part of a Q2 earnings preview. The analyst believes "solid" U.S. and international freight demand fundamentals and lower capacity will support improved transport earnings and "more robust" outlooks. Volume momentum and higher U.S. imports set up for favorable transport revisions throughout earnings season as core freight pricing moves higher for most carriers given further tightening of market capacity, the analyst tells investors in a research note.
