BofA upgrades trio of truckers on potential for Yellow bankruptcy

As previously reported, BofA analyst Ken Hoexter upgraded Saia (SAIA) to Buy from Neutral with a price target of $388, up from $311, upgraded XPO Logistics (XPO) to Buy from Neutral with a price target of $65, up from $57, and upgraded Old Dominion (ODFL) to Buy from Neutral with a price target of $391, up from $331. Industry news publication Freightwaves quoted Teamsters union president Sean O’Brien just over a week ago saying that he was told by Yellow Corp. (YELL) that it has only six weeks of liquidity left, noted BofA, which contends that the reported rising financial pressure at Yellow will likely lead to accelerated share redistribution in the Less-Than-Truckload, or LTL, market. Its upgrades focus on non-union carriers given their more flexible cost structure and continued share gains, though union carriers TFI International (TFII) and ArcBest (ARCB) may also see benefits from unionized shippers in a redistribution, the firm tells invesotrs.