Wells Fargo Upgrades Old Dominion Freight, Sees 15% Upside

Wells Fargo analyst Allison Poliniak-Cusic upgraded Old Dominion Freight Line Inc ODFL to Overweight from Equal Weight and increased the price target to $300 (an upside of 15%) from $280.
The analyst had the opportunity to visit with management and tour a terminal.
The analyst claims she walked away from the meeting more constructive and confident about the LTL freight environment and ODFL's growth opportunity within that market.
Poliniak-Cusic claimed to have heard about consistent high demand, which was echoed in recent talks with XPO Logistics Inc XPO.
The analyst mentions that despite reports of emerging consumer weakness, ODFL's specific end markets have continued to exhibit strength. Furthermore, she added that ODFL maintains a quality of service that is increasing its share of the LTL market.
According to the analyst, its earnings growth profile should continue to improve on a relative basis. Consequently, she believes an earnings multiple closer to its historical multiple is justifiable.
Price Action: ODFL shares are trading higher by 1.02% at $260.26 on the last check Monday.

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