William Blair analyst Ryan Merkel has maintained their neutral stance on PAL stock, giving a Hold rating on August 29.
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Ryan Merkel has given his Hold rating due to a combination of factors impacting Proficient Auto Logistics, Inc. He notes that the auto market fundamentals are weakening, with slower new car sales and rising dealer inventory levels. This trend is exacerbated by high interest rates, inflation, and declining consumer confidence, which are likely to persist and affect the company’s performance until at least 2026.
Additionally, Merkel expresses caution regarding the electric vehicle market, particularly with the expiration of the $7,500 federal EV credit. While there is potential for pent-up demand to be released if interest rates decrease, he anticipates that any positive effects will take several quarters to materialize. Despite recognizing the company’s long-term growth initiatives and opportunities for market share gains, Merkel remains cautious in the near term due to the uncertain macroeconomic environment, low stock float, and high revenue cyclicality.
Merkel covers the Industrials sector, focusing on stocks such as QXO Inc, Fastenal Company, and SiteOne Landscape Supply. According to TipRanks, Merkel has an average return of 8.3% and a 59.71% success rate on recommended stocks.
In another report released on August 29, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $7.50 price target.