Old Dominion Freight cut to Sell at Credit Suisse
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Old Dominion Freight Line (NASDAQ:ODFL) stock slid on Monday after Credit Suisse moved to a bearish rating.
Equity analyst Ariel Rose wrote that it is âtime for a breatherâ for trucking stocks, with a recent rally across the space elevating downside risk. While commentary from both JB Hunt Transportation (JBHT) and Knight-Swift Transportation (KNX) were encouraging signals of a bottom in the industry to come by mid-year, the market is currently âtoo complacent on recession risk,â according to Rose.
âIf there is economic downside, ODFL and SAIA seem likely to surrender some of their recent gains,â Rose advised clients. âFor ODFL in particular, which now trades at its highest pre-COVID valuation, we see limited room for sustainable multiple expansion from here.â
Old Dominion Freight Line (ODFL) was cut to Underperform from Neutral while SAIA (SAIA) was cut to Neutral from Outperform. TFI International (TFII), XPO Inc. (XPO), and ArcBest Corp (ARCB) were cited as stocks with more attractive valuations at present.
Read more on the Streetâs reaction to Knight-Swiftâs recent earnings report.