Benchmark Co. analyst Christopher Kuhn has reiterated their neutral stance on ODFL stock, giving a Hold rating on October 3.
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Christopher Kuhn has given his Hold rating due to a combination of factors impacting Old Dominion Freight Line’s performance. The company is experiencing sub-seasonal volumes, with tonnage and shipments tracking below expectations, reflecting broader macroeconomic challenges and pressure on freight demand. Despite these volume headwinds, Old Dominion has demonstrated resilience in its revenue quality, achieving mid-single-digit yield growth that slightly exceeds both internal estimates and management’s guidance.
While Old Dominion’s cautious strategy, such as avoiding the integration of Yellow’s terminals, is seen as prudent, the company faces challenges in the near-term demand environment. The analyst has lowered earnings estimates for the upcoming fiscal years, reflecting the ongoing volume softness. Although Old Dominion maintains strong pricing discipline and excess capacity, which could benefit the company when volumes recover, the stock is trading near its long-term average valuation without a premium compared to peers like Saia and XPO, which are preferred for greater upside potential in a recovering market cycle.
In another report released on October 3, UBS also maintained a Hold rating on the stock with a $164.00 price target.