Old Dominion Freight Line (ODFL) Named Catalyst Call Buy Idea at Deutsche Bank Ahead of Q1 Earnings

Deutsche Bank analyst Amit Mehrotra named Old Dominion Freight Line (NASDAQ: ODFL) a Catalyst Call Buy Idea ahead first-quarter earnings season due to the benefit from fuel surcharges.

Mehrotra said the early March fuel price surge could boost LTL company margins in the quarter because fuel surcharges equate to a percentage of base rates. Since base rates have been up sharply over several years, the analyst said fuel surcharge revenue could be margin accretive.

The analyst said this fuel charge benefit could also spill over to the second quarter.

Further, based on channel checks, the analyst said they do not believe demand for LTL capacity is waning.

"It's clear from our discussions that LTL companies with good service are seeing significant market share opportunities, which we believe disproportionately benefits ODFL and SAIA," the analyst said.

Despite the positive near-term Buy rating, the analyst reiterated a Hold rating and $347.00 price target on ODFL.

For an analyst ratings summary and ratings history on Old Dominion Freight Line click here. For more ratings news on Old Dominion Freight Line click here.

Shares of Old Dominion Freight Line closed at $311.32 yesterday.

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