- Raymond James analyst Patrick Tyler Brown lowered the price target for Old Dominion Freight Line Inc ODFL to $265 (an upside of 4%) from $305 while maintaining the Outperform rating on the shares.
- The analyst states that the sharp decline in truck spot rates has continued to dominate headlines — as per data, it is estimated that current truck spot rates per mile have fallen back to "peak" 2014 levels.
- Brown believes that the truck spot market has been at the epicenter of a well-documented shift from goods to services spending — all while truckload operating costs have increased starkly.
- The analyst believes ODFL's high-quality network and industry-leading door ownership position (~95%) carries more value and competitive advantages than the market appreciates.
- Brown states that the market continues to fundamentally re-rate the LTL industry higher, especially as pricing proves to be robust and the Street comes to understand the importance of LTL real estate values.
- Price Action: ODFL shares are trading higher by 1.84% at $255.51 on the last check Friday.
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