Jefferies initiated coverage on several LTL carriers, including Saia Inc. (NASDAQ:SAIA), Old Dominion Freight Line (NASDAQ:ODFL), and ArcBest Corp (NASDAQ:ARCB).
Saia shares gained more than 3% intra-day today after Jefferies initiated coverage on the company with a Buy rating and a price target of $350.00. The firm expects Saia to achieve above-peer top-line growth and margin gains as it improves its network density through ongoing terminal additions and closes the noticeable price gap vs. peers.
Old Dominion Freight Line was initiated with a Hold rating and a price target of $350.00. While characterizing the company as best-in-class within T&L, Jefferies believes that the company's premium multiple fairly accounts for this.
ArcBest Corp was initiated with a Buy rating and a price target of $110.00. Shares were up more than 1% intra-day today.
The firm’s Buy rating is based on its belief that the Street is discounting the company's multi-modal offering. They believe that ArcBest's shares are not being recognized for the structural margin gains in its LTL business, as well as its potential for stronger growth compared to its competitors during an economic recovery, despite being undervalued compared to the previous two freight recessions.