UPDATE: Deutsche Bank Color On ODFL Target Increase

Deutsche Bank, which

on shares of Old Dominion Freight Line Inc.

, is providing some color on the stock. “ODFL reported better than expected Q1 EPS of $0.38/share, $0.08/share above our estimate and well above Consensus of $0.29/share,” Deutsche Bank writes. “Strong performance in the quarter drove roughly 380bps of y/y OR improvement as the company gained operating leverage from its tonnage growth (up 20.3% y/y) and yield improvement (up 6.4% y/y, net of fuel). “We believe ODFL is poised to drive further operating leverage (incremental margins were solid at 20.5% in Q1) as it optimizes mix, takes market share, and works off of a more profitable base than its peers.” Old Dominion Freight Line closed Wednesday at $37.62.