Old Dominion Freight Faces Market Share Loss and Economic Challenges: Hold Rating Affirmed

Old Dominion Freight, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Ken Hoexter from Bank of America Securities reiterated a Hold rating on the stock and has a $149.00 price target.

Ken Hoexter has given his Hold rating due to a combination of factors impacting Old Dominion Freight’s performance. The company’s November update showed a decline in revenues per day and tons per day, although these figures were slightly better than initial estimates. Despite this, Old Dominion is losing market share as its decline in tons per day is significantly worse compared to its peers.
Furthermore, while there have been gains in pricing, the overall economic environment remains soft, as indicated by the industrial economy’s performance and survey results. The company’s operating ratio is expected to deteriorate more than usual, and while Old Dominion maintains a strong operational stance, its earnings per share are constrained by the ongoing freight recession. These elements contribute to the Hold rating, with a price objective slightly raised to $149.