Old Dominion initiated with a Neutral at JPMorgan

JPMorgan initiated coverage of Old Dominion with a Neutral rating and $465 price target. The less-than-truckload industry is a $82B niche within the $1.1 trillion U.S. surface transportation market that has only grown by 1% per year since 2004, the analyst tells investors in a research note. The firm is positive on the group ahead of a cyclical volume recovery but recognizes the stocks need a cyclical volume recovery and a more supportive truckload market in order to retain their valuations. JPMorgan prefer Saia’s “unique growth story,” ArcBest’s “upside to better service, and XPO “which combines both themes.”