Proficient Auto Logistics (PAL) shares are on the rise today, fueled by a Buy rating from Stifel analyst J. Bruce Chan. Despite acknowledging the potential impact of ongoing port strikes on the company’s volumes, Chan maintains his optimistic outlook.
Chan highlights the auto-hauling sector’s inherent strength, emphasizing its ability to generate higher yields compared to the broader dry van truckload market. He explains that while short-term disruptions like port strikes may affect volume, the impact is mitigated by factors such as fewer lost backhauls and a smaller terminal network compared to LTL operations.
He acknowledges that PAL’s stock has recently faced pressure due to a combination of factors, including an unexpected management departure, a challenging third-quarter operating environment, and the ongoing port strikes. However, Chan believes the stock’s recent decline has overcorrected for these short-term disruptions, which he expects to have minimal impact on 2025 valuations.
Chan maintains his 2024 and 2025 earnings per share (EPS) estimates at $0.88 and $1.54, respectively. At the last check, PAL shares were up 4.55% at $13.80.
While the potential impact of the port strikes remains a concern, Stifel’s Buy rating and the analyst’s confidence in the company’s long-term prospects provide a positive signal for PAL investors.
