Goldman Sachs Reiterates Conviction List Buy Rating, $42 PT on Old Dominion Freight Line on Raised 1Q13 Tonnage Guidance

In a report published Friday, Goldman Sachs analyst Tom Kim reiterated a Conviction List Buy rating and $42.00 price target on Old Dominion Freight Line

. In the report, Kim noted, “We reiterate our CL-Buy on ODFL following its 1Q13 intra-quarter update. Before the market, ODFL raised its 1Q13 tonnage guidance to +4.5%-5.0% yoy from +4.0%-4.5%. The tonnage appears to be slightly faster than the broader market growth of 4.4% yoy ytd, as per the American Truckers Association. Notably, ODFL has been able to sustain its pricing discipline with freight rates ex-fuel increasing 2.5%-3.0% yoy (no change to guidance). We are raising our 1Q13 EPS estimate from $0.424 to $0.435 (vs. consensus of $0.41) which lifts our full-year EPS by $0.01 for 2013E. Our 2013E-15E estimates are 5-7% ahead of consensus.” Old Dominion Freight Line closed on Thursday at $36.31.