Cowen Securities Reiterates Hold Rating on Old Dominion Freight Line on Raised 1Q13 Tonnage Guidance

In a report published Friday, Cowen Securities analyst Jason H. Seidl reiterated a Hold rating on Old Dominion Freight Line ODFL. In the report, Seidl noted, “ODFL raised its 1Q13 tonnage guidance ahead of a management public appearance. The company increased y/y tonnage growth expectations to a range of 4.5% to 5.0% from its previous range of 4.0% to 4.5%. ODFL also affirmed its previously discussed expectations for an increase in revenue per hundredweight, excluding fuel surcharge, in a range of 2.5% to 3.0%. ODFL's positive tonnage update is consistent with our industry channel checks and trends seen at SAIA. The positive tonnage trends seen at key carriers without a slip in pricing power is indicative, in our opinion, of an improving LTL environment. If the macro environment continues to improve and the housing recovery persists, the LTL industry would be well positioned for margin expansion and higher earnings.” Old Dominion Freight Line closed on Thursday at $36.31.