Benchmark Co. analyst Christopher Kuhn has maintained their neutral stance on ODFL stock, giving a Hold rating yesterday.
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Christopher Kuhn has given his Hold rating due to a combination of factors impacting Old Dominion Freight Line’s performance. Despite the company’s strong revenue quality, which is bolstered by mid-single-digit growth in revenue per hundredweight, the overall volume remains under pressure due to a sluggish economy. The company’s tonnage metrics are trailing behind expectations, with a notable decrease in tonnage per day observed in recent months.
While pricing remains robust, with yield excluding fuel surpassing estimates, the decline in revenue per day highlights the challenges posed by lower tonnage. The company’s yield performance, although exceeding projections, has decelerated compared to previous quarters. These mixed signals, with strong pricing but weaker volume, contribute to the Hold rating as the company navigates through these economic pressures.
Kuhn covers the Industrials sector, focusing on stocks such as XPO, Old Dominion Freight, and Knight Transportation. According to TipRanks, Kuhn has an average return of 7.3% and a 51.43% success rate on recommended stocks.
In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a $156.00 price target.