BofA Securities Downgrades Old Dominion Freight Line (ODFL) to Neutral as Volumes Hit a Pothole

BofA Securities analyst Ken Hoexter downgraded Old Dominion Freight Line (NASDAQ: ODFL) from Buy to Neutral with a price target of $446.00 (from $443.00).

The analyst comments "Old Dominion Freight Line posted its mid-1Q24 update with Feb Less-than-Truckload (LTL) Revenues/Day +1.2%, reversing from -2.7% in January to average -0.8% 1QTD as weather conditions improved (we had estimated +4.3% in 1Q24, now +1.7%). February LTL Tons/Day declined 3.0% y-y, moderating from -5.0% in January to average -4.0% 1QTD (our estimate was +0.9% in 1Q24, now -3.4%) as Weight/Shipment declined 3.2% (averaging -3.0% 1QTD, we now project -3.0% in 1Q24) and Shipments/Day increased 0.2% (avg -1.1% 1QTD, we now estimate -0.4% in 1Q24). Although volume trends were below our estimates, LTL yields were above our projections due to continued pricing discipline. 1QTD Revenue/Hundredweight (cwt) and Rev/cwt ex-fuel were up 3.7% y-y and 7.1% y-y, respectively (BofAe was +2.2% and +6.0%, now +4.1% and +7.3%, respectively, in 1Q24). This implies Feb all-in Revenue/cwt growth of +4.6% y-y (from +2.7% in Jan) and Revenue/cwt ex-fuel growth of +7.5% y-y (from +6.7% in Jan)."

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 $430.08 yesterday.

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