ODFL - Old Dominion Freight Line called a growth story by Goldman Sachs

Goldman Sachs upgrades Old Dominion (ODFL) to a Buy rating from Neutral. The firm points to an industrial economy expected to recover sharply in 2021 and 2022 and solid LTL pricing. "We believe that the market will look quite favorably to well-run companies with not only cyclical recovery potential, but secular aspects to its growth story - for ODFL this includes ongoing firm pricing, as well as the ability to further push its operating ratio lower. We think ODFL's incremental margin potential should remain elevated over the next couple of years as density returns, and pricing holds (we think incremental margin could exceed the historical 25%-30% target range). While we leave our 2021 EPS estimate unchanged to take into account the possible effects of the February weather, we do believe that if volumes surge more than expected, we could yet see upside to our 2021/2022 forecast as density surges, which

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Old Dominion Freight Line called a growth story by Goldman Sachs