Barclays lifts PTs of less-than-truckload carriers on profit growth potential

Old Dominion Freight Line

13/11/2024 14:31

** Barclays lifts price targets of North American less-than-truckload (LTL) freight carriers
 Company         New PT      Old PT
 Heartland       $11         $10
 Express                     
  HTLD.O                     
 Knight-Swift    $68         $62
 Transportation              
  KNX.N                      
 Old Dominion    $220        $190
 Freight Line                
  ODFL.O                     
 Saia  SAIA.O    $620        $515
 Werner          $40         $36
 Enterprises                 
  WERN.O                     
 XPO  XPO.N      $170        $150
    ** LTL freight is an economical option of shipping that involves only a portion of the space on a truck
    ** "LTL industry volumes have been underperforming industrial production for over two years, a trend that we expect to begin reversing as truckload markets tighten in 2025," says Barclays
    ** Brokerage cites the expected upcycle to support the industry's "meaningful" EPS growth potential through 2026
    ** Says higher valuations and recent share outperformance reflect investor optimism for LTL companies beyond the current downturn
    ** As of last close, the Dow Jones Transport Index  .DJT  had risen 9.3% YTD

(Reporting by Aatreyee Dasgupta)
((Aatreyee.Dasgupta@thomsonreuters.com))