UPDATE: Deutsche Bank Color On ODFL Target Increase

Deutsche Bank, which raised its PT on shares of Old Dominion Freight Line Inc. ODFL, is providing some color on the stock. “ODFL reported better than expected Q1 EPS of $0.38/share, $0.08/share above our estimate and well above Consensus of $0.29/share,” Deutsche Bank writes. “Strong performance in the quarter drove roughly 380bps of y/y OR improvement as the company gained operating leverage from its tonnage growth (up 20.3% y/y) and yield improvement (up 6.4% y/y, net of fuel). “We believe ODFL is poised to drive further operating leverage (incremental margins were solid at 20.5% in Q1) as it optimizes mix, takes market share, and works off of a more profitable base than its peers.” Old Dominion Freight Line closed Wednesday at $37.62.