Deutsche Bank analysts lifted Old Dominion Freight Line (NASDAQ:ODFL) to Buy from Hold, raising the price target on the stock to $350 from $301 per share in a note Friday.
Analysts declared that the North Carolina-based company's stock and earnings could double. "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," they wrote.
Analysts explained that the firm's confidence in the long-term trajectory is due to its positive view of the LTL industry as a whole.
"Beyond simply a consolidated industry, we believe the quality of LTL capacity is highly differentiated across carriers, led by service, which allows for pricing power and disproportionate profitable growth for the highest quality players," the analysts added.
"ODFL is right at the top of the quality list, in our view, with over 15 years of data to back it up."