RXO (RXO) is facing growing economic uncertainty in addition to a soft trucking environment, analysts at Oppenheimer said in a note to clients Friday.

During its Q4 conference call in February, RXO previously projected brokerage volume to decline by a mid- to high-single-digit percentage annually in Q1 and volume to increase for full-year 2025, according to the note. However, due to rising economic uncertainty, Oppenheimer said it's "incrementally cautious on

RXO's volume trajectory."

Oppenheimer analysts said RXO's operating environment is likely to "remain challenged for the foreseeable future." As a result, Oppenheimer lowered its rating on the truck brokerage company to perform from outperform and withdrew its price target.

"With incrementally challenging business conditions likely to perpetuate and reduced timing visibility related to a cyclical rebound, we're moving to the sidelines," the analysts added.

Shares of RXO were down nearly 11% in recent trading.

Price: 14.07, Change: -1.70, Percent Change: -10.78