Benchmark Co. analyst Christopher Kuhn has maintained their neutral stance on ODFL stock, giving a Hold rating today.
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Christopher Kuhn has given his Hold rating due to a combination of factors affecting Old Dominion Freight Line’s performance. The company’s fourth-quarter volumes are under pressure due to a challenging macroeconomic environment and are trailing behind its peers, although they are generally in line with expectations. Despite this, the revenue quality remains robust, supported by a mid-single-digit growth in revenue per hundredweight.
Revenue per day has seen a decline, with a 6.8% drop in October and a 4.4% decrease in November, attributed to lower tonnage. However, this was somewhat balanced by stronger revenue per hundredweight. The company’s pricing remains firm, with revenue per hundredweight excluding fuel showing a year-over-year increase of 5.2%, slightly above the analyst’s estimate. These mixed signals, with solid revenue quality but declining volumes, contribute to the Hold rating as the company navigates these challenges.
In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $149.00 price target.