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On Wednesday, BofA Securities analysts revised their outlook for Old Dominion Freight Line (NASDAQ: NASDAQ:ODFL), a transportation company with strong financial health according to InvestingPro metrics, by reducing the stock’s price target to $171 from $183. This adjustment comes as the firm maintains its Neutral rating on the stock, with analyst targets now ranging from $134 to $200.
The revision follows Old Dominion’s mid-second-quarter update, which reported a 5.8% year-over-year decline in revenue per day for May. This figure fell short of BofA’s previous target of a 3.9% decline for the month, and the firm’s earlier full second-quarter target of a 4.7% decrease, which has now been revised to 5.7%. The company’s trailing twelve-month revenue stands at $5.73 billion, with a healthy gross profit margin of 39.75%.
The drop in revenue was primarily driven by an 8.4% decrease in less-than-truckload (LTL) tons per day in May, which also lagged behind BofA’s May target of a 7.5% decline. The firm has now adjusted its full second-quarter target for LTL tons per day to an 8.7% decline, from the prior 8.1%.
Shipments per day decreased by 6.8% in May, slightly missing BofA’s target of a 6.5% decline, while weight per shipment fell by 1.9%, compared to the firm’s target of a 1% decrease. These factors, coupled with the broader economic impact of China tariffs, contributed to the weaker-than-expected results. Despite these challenges, Old Dominion’s CEO Freeman stated that the company is maintaining its market share amid a soft market environment. InvestingPro analysis shows the company maintains robust profitability with a 27% return on equity, though current valuations suggest the stock may be slightly overvalued. For detailed insights and additional analysis, including 8 key ProTips and comprehensive financial metrics, investors can access the full Pro Research Report on InvestingPro.
In other recent news, Old Dominion Freight Line reported a 5.8% decrease in less-than-truckload (LTL) revenue per day for May 2025 compared to the previous year, primarily due to an 8.4% reduction in LTL tons per day. Despite these challenges, the company noted a 3.2% increase in LTL revenue per hundredweight and a 5.6% rise when excluding fuel surcharges for the quarter-to-date. Meanwhile, Goldman Sachs upgraded Old Dominion’s stock rating to Buy, raising the price target to $200, indicating optimism about the company’s potential growth. Conversely, Benchmark maintained a Hold rating on the stock, noting a decrease in earnings per share (EPS) for the first quarter, although it surpassed expectations. BMO Capital Markets lowered its price target to $175, citing persistent demand challenges affecting short-term performance, despite first-quarter results exceeding expectations. Similarly, Stephens adjusted its price target to $180 but maintained an Overweight rating, highlighting Old Dominion’s strong service quality and strategic positioning for future market share gains. These developments reflect a mixed outlook for Old Dominion, with analysts expressing varied expectations based on recent performance and market conditions.
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