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Investing.com - Raymond (NSE:RYMD) James raised its price target on Proficient Auto Logistics (NASDAQ:PAL) to $13.00 from $12.00 on Tuesday, while maintaining an Outperform rating on the stock. Currently trading at $5.97, near its 52-week low of $5.88, InvestingPro analysis suggests the stock is undervalued.
The investment firm cited several factors supporting its positive outlook, including PAL’s unique position to leverage a recovering auto market, declining union carrier share, and potential benefits from internal self-help initiatives. With analyst consensus projecting profitability this year and revenue growth of 73%, these catalysts could help reverse the stock’s 69.63% decline over the past year.
Raymond James highlighted specific opportunities for PAL to improve performance, including garnering scale synergies, reducing empty miles by filling backhauls, and shifting from subhaul to company-owned deliveries—all of which could enhance margins and EBITDA/EBIT contributions.
The firm noted that the auto hauling industry has higher barriers to entry compared to the truckload sector, and suggested recent challenges in the auto market could set up the industry for an idiosyncratic pricing cycle once demand normalizes.
At 4.5 times Raymond James’ 2026 estimated adjusted EBITDA, the firm believes the market is currently valuing PAL closer to a truckload operator, but sees potential for multiple expansion as the company demonstrates its differentiated business model.
In other recent news, Proficient Auto Logistics reported strong financial results for the second quarter of 2025. The company experienced a significant increase in operating revenue, which grew by 21.4% from the previous quarter and 8.4% compared to the same period last year, reaching $115.5 million. Despite a decline in revenue per unit, these results were met with positive reactions in the market. Analyst firms have not yet provided updates on any changes to their ratings for Proficient Auto Logistics following these earnings results. The company’s performance highlights its ability to achieve substantial revenue growth in the current economic climate. Investors may be particularly interested in these developments as they evaluate the company’s financial health and future prospects.
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