RXO is poised to bolster its bottom line as the truckload market continues to tighten, leading the transportation and technology firm’s shares to once again rally, according to BMO Capital Markets. The investment bank initiated coverage of the shipping name at outperform. It also put a $35 price target, suggesting 29% upside from Monday’s close. “RXO offers the clear operating leverage to the supply-driven tightening of the truckload market,” analyst Fadi Chamoun said in a note to clients. “We see material upside in earnings if…load revisits the levels previously associated with current level of truckload market tightness, given increased scale and improved productivity.” RXO is slated to report its second-quarter earnings in early August. RXO YTD mountain RXO year to date The firm’s truckload brokerage volumes are already up about 80% this year, while its productivity has improved roughly 40% on a two-year stack, which should support its business’ continued growth, the analyst added. BMO expects the shipping company to notch roughly $600 million peak adjusted EBITDA by the end of 2028, or more than double the $292 million consensus forecast. That better-than-expected earnings growth should translate to robust share gains for RXO, per Chamoun. “Upside to our base case could come from…a strong free cash flow outlook that supports accretive M & A optionality,” the analyst wrote. BMO Capital Markets’ call goes against consensus on Wall Street. Of the 18 analysts covering RXO, 11 have a hold on the stock, LSEG data shows. Shares have risen 114% in 2026.