BB&T Capital Ups Old Dominion Freight
BB&T Capital raised its investment opinion on Old Dominion Freight Line (ODFL ) to buy from hold.
Analyst John Barnes views Old Dominion Freight Line as a quality name with an exciting growth outlook and potential for earnings per share upside -- exactly the kind of name he wants in this environment.
Although impressed by the company's story, his previous rating was based on concerns over pricing, increasing competition, and valuation. Now he thinks pricing and volume continue to be solid. At the same time he's willing to pay premium valuation for premium growth characteristics. He believes Old Dominion Freight Line's fundamentals are strong. He sees $2.08 earnings per share in 2005, $2.45 in 2006, and $2.86 in 2007.