Analyst Jason Seidl of TD Cowen reiterated a Hold rating on Old Dominion Freight, reducing the price target to $154.00.
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Jason Seidl’s rating is based on several factors affecting Old Dominion Freight’s current market position. Despite the company exceeding earnings expectations in the third quarter, driven by strong cost control and better-than-expected yields, the overall market conditions present challenges. The less-than-truckload (LTL) sector is experiencing significant declines in industrial demand, leading to double-digit tonnage decreases and excess capacity, which are expected to continue impacting margins in the near term.
Management remains optimistic about their network strategy, but the lack of clarity in trade conditions and the ongoing trade war overhang make a fourth-quarter recovery unlikely. While Old Dominion Freight has maintained stable pricing and yield growth, the high level of excess capacity in the industry poses a challenge. The company is hopeful for a recovery in early 2026, but investors will need to see improvements in industrial markers to regain confidence. As a result, Jason Seidl has given a Hold rating, reflecting the balance between the company’s strong performance and the uncertain market environment.