Raymond James Slashes Old Dominion Freight Line Price Target By 13%

Raymond James Slashes Old Dominion Freight Line Price Target By 13%
  • 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.

Posted In: BriefsAnalyst ColorPrice TargetReiterationAnalyst Ratings