-- RXO (RXO) has an average rating of Hold and mean price target of $20.25, according to analysts polled by FactSet.
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Price: $23.23, Change: $+0.08, Percent Change: +0.35%
The closure of the Strait of Hormuz is reshaping the economics and policies of clean transport fuels, turning what was largely a decarbonization effort into a matter of energy security for governments and industries alike, Rystad Energy said in a whitepaper on Friday.Rystad analysts said the disruption to strategic waterways is accelerating investment and policy support for biofuels, sustainable aviation fuel, and other low-carbon alternatives across shipping, aviation, and road transport."The Hormuz crisis proves that energy security and decarbonization are not parallel tracks - they are converging, and that strengthens the case for domestically produced clean fuels in every transport sector," Thomas Heerschap, vice president for bioenergy at Rystad Energy, said.SAF in aviation is entering what Rystad described as a "policy-driven growth phase," supported by mandates in Europe, Asia and the Americas.Global SAF demand is projected to rise to about 1.2 million barrels per day by 2040, with the strongest growth expected in Asia as air travel expands and governments tighten emissions targets.Europe's ReFuelEU Aviation regulation requires a 2% SAF blend from 2025, rising to 6% by 2030, while Japan is targeting 10% SAF usage by the end of the decade.Singapore, however, delayed its SAF mandate to 2027 following high jet fuel prices and supply disruptions amid the ongoing Middle East conflict.Rystad said the SAF premium over conventional jet fuel had narrowed sharply since late 2025 as crude prices surged following the escalation of tensions in the Middle East.The premium fell to about $1,040 per ton after peaking near $2,150 per ton in late 2025 as higher oil prices boosted the cost of conventional Jet A fuel faster than SAF prices rose.However, despite the narrowing premium, airlines remain under pressure from higher overall fuel bills, leading many carriers to limit SAF purchases to mandated volumes and delay voluntary procurement commitments.The energy crisis is also reinforcing the appeal of biodiesel, bio-LNG and biomethanol as alternatives to conventional bunker fuel in maritime shipping, even as regulatory uncertainty persists around the International Maritime Organization's net-zero framework.Bio-LNG was identified as one of the most attractive near-term compliance pathways under Europe's FuelEU Maritime regulation, although uptake remains constrained by vessel readiness and limited fuel availability.Meanwhile, Rystad said emerging economies are increasingly using road-transport biofuel mandates to reduce dependence on imported crude and to shield their currencies from oil price shocks.India, Indonesia and Brazil could collectively avoid about $28 billion in petroleum imports in 2026 through existing ethanol and biodiesel blending programs, with savings potentially rising above $33 billion by 2028 under higher-blend scenarios.Indonesia's B40 biodiesel mandate alone could reduce diesel import costs by an estimated $13.5 billion this year under a $95-per-barrel Brent scenario, while India's E20 ethanol program could generate $6.4 billion in avoided crude imports.Malaysia, Vietnam and the Philippines are also expanding blending mandates as governments across Asia increasingly view biofuels as part of broader energy security strategies.However, Rystad said the biggest risk to the sector was regulatory uncertainty, which was delaying investment decisions just as geopolitical tensions and decarbonization goals were reinforcing the need for alternative fuel capacity.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lift our 12-month target following Q1 results to $250 from $220, valuing shares at 27x our 2027 EPS outlook of $9.27 (up from $8.15; 2026 EPS forecast revised to $7.95 from $7.46), above ITT's long-term historical average given portfolio optimization toward high-growth markets. The integration of SPX FLOW, which closed in March, accounted for a significant portion of the top-line expansion (up 33% Y/Y) and was immediately accretive to adjusted earnings per share - even after accounting for initial acquisition-related costs and financing. We are encouraged by ITT's early results in integrating SPX FLOW, with $15M of cost synergies expected by year-end. Underlying organic performance was driven by sustained strength in aerospace and defense within the CCT segment, share gains in Motion Tech that outpaced a declining automotive market, and robust project and short-cycle activity in the legacy Flow Tech business.
EPAM Systems (EPAM) is likely to face weaker discretionary spending by clients, especially in Q2, amid ongoing macro uncertainty, Morgan Stanley said in a Friday note.The company's guided for Q2 non-GAAP earnings of $3.10 to $3.18 per diluted share on revenue of $1.40 billion to $1.415 billion. Analysts surveyed by FactSet are looking for non-GAAP earnings of $3.10 on revenue of $1.42 billion."Discretionary continues to be more pressured than mission-critical managed services work provided by other IT Services peers," Morgan Stanley said, noting similar findings from its 1Q26 CIO Survey. This is expected to drag clients' decision-making, delaying deals for the company, the investment firm added.Deal delays have already started for EPAM Systems in April/May, leading the company to cut its 2026 revenue growth guidance to between 4% and 6.5%, from 4.5% to 7.5% previously, according to Morgan Stanley. The company also has low visibility into win rates, deal close timing, and ramp pace, the firm said.Morgan Stanley cut its price target on EPAM Systems to $112 from $148, with an equal-weight rating.Price: $99.95, Change: $-4.29, Percent Change: -4.12%