BMO Capital Markets believes RXO is well-positioned to enhance its profitability due to the tightening truckload market. Analyst Fadi Chamoun highlighted that RXO's truckload brokerage volumes have surged by approximately 80% this year, with productivity improving by about 40% over two years.
This operational leverage could lead to substantial earnings growth, with BMO projecting RXO's adjusted EBITDA could reach around $600 million by the end of 2028, significantly exceeding the $292 million consensus forecast. The firm’s strong free cash flow outlook may also provide opportunities for strategic mergers and acquisitions.
Despite BMO's optimistic stance, the broader market sentiment is more cautious, with 11 out of 18 analysts maintaining a hold rating on the stock. RXO's shares have already increased by 114% in 2026, reflecting strong investor interest and confidence in its growth trajectory