Old Dominion Freight attracts upgrade from Deutsche Bank on positive earnings potential
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Deutsche Bank upgraded Old Dominion Freight Line (NASDAQ:ODFL) to a Buy rating from Hold on Friday as it made the case that earnings could double.
Analyst Amit Mehrotra deconstructed the drivers of ODFL's past success and extrapolated each component to issue a positive assessment on earnings power to 2030.
"The bottom line is we see potential for operating profit to exceed $4 billion in 2030 (vs. $1.8 billion in 2022). We think this is enough to underwrite equity value of over $600 per share (vs. $300+ today), equating to double digit annual return from current levels. Importantly, our forecasts do not extrapolate any COVID-related benefits to growth rates."
Deutsche Bank hiked its price target on Old Dominion Freight Line (ODFL) to $350 from $301.
Shares of ODFL gained 0.89% to $316.00 in premarket action on Friday.
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