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Investing.com - Stifel has reduced its price target on Proficient Auto Logistics (NASDAQ:PAL) to $13.00 from $14.00 while maintaining a Buy rating on the stock. Currently trading at $5.97, the stock appears undervalued according to InvestingPro analysis, despite falling 69.63% over the past year.
The auto logistics company reported second-quarter 2025 adjusted EBITDA of $11.3 million, which aligned with Stifel’s estimates and consensus expectations. Revenue performance exceeded expectations, growing 21% sequentially compared to the company’s high single-digit guidance. With a price-to-book ratio of just 0.48 and analysts forecasting 73% revenue growth for FY2025, the company shows promising fundamentals despite current challenges.
PAL’s strong revenue was driven by significant unit volume growth, which increased 24% year-over-year and 28% sequentially. This growth stemmed from the Brothers acquisition, contract wins following Jack Cooper’s bankruptcy, and higher volumes from existing customers amid solid OEM production and healthier dealer inventories.
Management expects only a 2%-5% seasonal volume decline for the third quarter, which Stifel notes is better than pre-announcement consensus estimates. The company maintained its Operating Ratio guidance despite seasonal volume challenges, citing cost reduction opportunities as business systems integrate.
Stifel remains optimistic about PAL’s prospects, pointing to internal improvement opportunities, market share gains, a strong cash position, and an improving outlook for the auto hauling sector as reasons for maintaining its Buy rating. For deeper insights into PAL’s valuation and growth prospects, including additional ProTips and comprehensive financial analysis, visit InvestingPro, where you’ll find exclusive research reports and detailed metrics.
In other recent news, Proficient Auto Logistics reported a strong financial performance for the second quarter of 2025. The company achieved a 21.4% increase in operating revenue compared to the previous quarter and an 8.4% rise year-over-year, totaling $115.5 million. Despite a decrease in revenue per unit, the overall revenue growth was significant. Additionally, Raymond (NSE:RYMD) James raised its price target for Proficient Auto Logistics to $13.00 from $12.00, maintaining an Outperform rating. The investment firm highlighted the company’s strategic position to benefit from a recovering auto market and internal initiatives. These developments reflect positive market reactions and analyst confidence in the company’s future performance.
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