ODFL - Old Dominion Freight Line draws cautious view from UBS after +80% YTD rally

UBS turns cautious on Old Dominion Freight Line (ODFL -0.7%) on its view that the strong growth story appears to be fully reflected after an 84% move higher in shares this year. The firm moves to a Neutral rating on ODFL from Buy. Analyst Thomas Wadewitz: "We are modeling OD to deliver strong 55% EPS growth in 2021E and we estimate another 25% growth in 2022. However, with ODFL trading at 35x on Consensus 2022 EPS it is hard to see further valuation expansion as a lever for the stock and the pace of growth in shipments / tonnage is likely to slow in 2022. We expect OD to continue delivering strong performance in the long term but upside on a 12 month basis no longer appears compelling." UBS rolls forward its price target to $365 off of new 2023 EPS estimates. See all the consensus estimates on ODFL.

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Old Dominion Freight Line draws cautious view from UBS after +80% YTD rally