C.H. Robinson Worldwide's (CHRW) proposed acquisition of RXO (RXO) will help it "meaningfully" widen the gap with other truck brokers approaching 20% of the market, UBS Securities said in a note Monday.

Based on assumptions for cost synergies and revenue, UBS analysts projected EPS accretion of $1.15 at the midpoint of their upside and downside scenarios, which would lift their 2028 EPS outlook to $10.35 from $9.20 currently.

The impact of customer overlap may be limited, analysts said, citing initial feedback from industry contacts. They said RXO's previous combination with Coyote is likely to provide insights on how to manage the process.

The larger scale of the combined company, coupled with effective use of artificial intelligence and technology, can reduce cost structure and make C.H. Robinson more attractive to shippers, who are increasingly looking at risk management from a legal and capacity perspective, according to the note.

UBS Securities maintained its buy rating on the stock, with a price target of $230.

C.H. Robinson shares were down 4% in Tuesday trading.

Price: 135.01, Change: -5.60, Percent Change: -3.98