Goldman Sachs Upgrades Old Dominion Freight Line (ODFL) Stock, Raises PT

On June 2, Goldman Sachs upgraded Old Dominion Freight Line, Inc. (NASDAQ:ODFL)’s stock to “Buy” from “Neutral” stance, while lifting the price objective to $200 from $190, as reported by The Fly.

Goldman Sachs Upgrades Old Dominion Freight Line (ODFL) Stock, Raises PT

A large fleet of freight trucks travelling down an interstate highway.

The upgrade and new price target exhibit a favourable outlook for Old Dominion Freight Line, Inc. (NASDAQ:ODFL) as it is anticipated to witness a cyclical recovery in its earnings, resulting in an uplift in the growth trajectory.

Overall, the firm pivoted its investment recommendations to favor the broader trucking sector, and it now has a neutral stance on the rail sector and rail-adjacent sector. The analyst believes that making investments early in transportation stocks ahead of their next earnings upgrade cycle can be a good move.

Furthermore, this approach remains in line with the firm’s strategy of buying when fundamentals are under pressure. The firm opines that truckers’ share price underperformance, along with a freight recovery analysis, demonstrates that the current trading junctures provide healthy return potential against the risks.

Capital expenditures came in at $88.1 million for Q1 2025. Old Dominion Freight Line, Inc. (NASDAQ:ODFL) anticipates its aggregate capital expenditures for 2025 to total ~$450 million, which reflects a $125 million reduction from the initial plan. This total consists of planned expenditures of $210 million for real estate and service center expansion projects, $190 million for tractors and trailers, and $50 million for IT and other assets.

While we acknowledge the potential of ODFL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than ODFL and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.