BUZZ-Barclays lifts PTs of less-than-truckload carriers on profit growth potential

Reuters
2024-11-13

** Barclays lifts price targets of North American less-than-truckload $(LTL)$ freight carriers

Company New PT Old PT

Heartland $11 $10

Express

Knight-Swift $68 $62

Transportation

Old Dominion $220 $190

Freight Line

Saia $620 $515

Werner $40 $36

Enterprises

XPO $170 $150

** LTL freight is an economical option of shipping that involves only a portion of the space on a truck

** "LTL industry volumes have been underperforming industrial production for over two years, a trend that we expect to begin reversing as truckload markets tighten in 2025," says Barclays

** Brokerage cites the expected upcycle to support the industry's "meaningful" EPS growth potential through 2026

** Says higher valuations and recent share outperformance reflect investor optimism for LTL companies beyond the current downturn

** As of last close, the Dow Jones Transport Index had risen 9.3% YTD

(Reporting by Aatreyee Dasgupta) ((Aatreyee.Dasgupta@thomsonreuters.com))

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