ODFL - Old Dominion Freight Line expected to see moderating yields
Bank of America weighed in on Old Dominion Freight Line (NASDAQ:ODFL) after the company posted a Q2 update. Notably, ODFL's daily tonnage was up 2.3% in May year-over-year to decelerate from the 6.4% pace in April. The firm boosted its 2022 EPS estimate on ODFL to $11.60 vs. $11.63 consensus and raised its 2023 EPS estimate to $13.15 vs. $12.34 consensus. The increased targets are said to reflect slightly lower tonnage, yet stronger than targeted all-in yields and higher fuel costs. Stronger ex-fuel yields are also anticipated, although some moderation is likely. BofA increased its price objective to $273 from $264 as it kept its 23.5X target on 2022 EPS, which is noted to remain within the 13X to 26x historic range. An Underperform rating is held in place with the stock's multiple decline also lining up with a decelerating growth rate. Dig into the Old Dominion Freight Line May
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Old Dominion Freight Line expected to see moderating yields