FedEx to Spin Off Freight Business, Boosting Valuation Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 21 Jan 26
Source: Business Insider
Old Dominion Freight Line Inc. saw a price increase of 5.00% as it crossed above its 5-day SMA, reflecting positive market conditions.
The catalyst for this movement is the announcement from FedEx regarding the spin-off of its freight business, which is expected to enhance its valuation and potentially impact competition in the freight sector. The new FedEx Freight entity will be led by experienced executives and aims to improve service levels to compete with Old Dominion, indicating a strategic shift in the market landscape.
This development may lead to increased competition in the freight industry, prompting Old Dominion to further enhance its service offerings and operational efficiencies to maintain its market leadership.
Analyst Views on ODFL
Wall Street analysts forecast ODFL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ODFL is 162.18 USD with a low forecast of 114.00 USD and a high forecast of 196.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
7 Buy
8 Hold
3 Sell
Hold
Current: 172.720
Low
114.00
Averages
162.18
High
196.00
Current: 172.720
Low
114.00
Averages
162.18
High
196.00
About ODFL
Old Dominion Freight Line, Inc. is a less-than-truckload (LTL) motor carrier. The Company provides regional, inter-regional and national LTL services through a single integrated, union-free organization. Its service offerings, which include expedited transportation, are provided through an expansive network of service centers located throughout the continental United States. It offers a range of value-added services including container drayage, truckload brokerage and supply chain consulting. It operates approximately 261 service center locations, of which it owns 239 and leased 22. Its service centers are responsible for the pickup and delivery of freight within their local service area. Its systems allow it to offer its customers access to information, such as freight tracking, shipping documents, rate quotes, rate databases and account activity. Its integrated systems and customer service department provide its customers with a single point of contact to access information.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
