Credit Suisse Downgrades Old Dominion Freight Line (ODFL) to Underperform

(Updated - January 30, 2023 6:05 AM EST)

Credit Suisse analyst Ariel Rosa downgraded Old Dominion Freight Line (NASDAQ: ODFL) from Neutral to Underperform with a price target of $323.00.

The analyst comments "Truck stocks posted strong gains on Friday, adding to sizeable gains since the start of the year, with shares of Old Dominion (ODFL) up +18% year-to-date. We downgrade ODFL to Underperform from Neutral, as its recent gains have lifted the stock above our $323 price target, which we leave unchanged based on a 27x target P/E on our 2023e EPS. Recent gains in trucking stocks seem to support the view in our 2023 Outlook that trucking rates, which have been under pressure since January 2022, are likely to bottom in the coming months as excess retail inventories get cleared and as truck capacity gets rationalized. This perspective was corroborated by 4Q commentary from truckers J.B. Hunt (JBHT) and Knight-Swift (KNX) expecting volumes to return in 2H23 and for freight rates to find support near current levels."

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 $333.79 yesterday.

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