** Shares of transportation broker RXO RXO.N up nearly 1% at about $17.61 premarket

** Stifel upgrades rating to "buy" from "hold", maintains PT at $22

** Says co's improving pricing discipline, completed integration and expected margin gains position it well for a recovery

** Adds tightening market conditions, higher rates and operational tailwinds position RXO for a sustained margin resurgence

** Montgomery ruling, which increases liability for hiring unsafe carriers, should favor scaled players like RXO and drive long-term share gains - Stifel

** U.S. Supreme Court's Montgomery vs. Caribe Transport II, LLC- ruling allows freight brokers to be sued if they fail to properly vet and hire safe trucking carriers

** 5 of 19 brokerages rate stock "buy" or higher, 12 "hold" and 2 "sell"; median PT is $22 - data compiled by LSEG

** As of last close, stock up 38.5% YTD