Proficient Auto Logistics Sees Stock Bounce Amid Short-Term Disruptions, Analyst Stays Bullish

Proficient Auto Logistics, Inc. (NASDAQ:PAL) shares are trading higher on Thursday. Stifel analyst J. Bruce Chan reiterated a Buy rating on the stock with a price target of $21.00.

The analyst writes that a prolonged port strike could pressure volumes at the company. While a backlog of under a week should be manageable this quarter, longer disruptions could extend impacts into 2025.

The auto-hauling sector offers greater yield benefits than the broader dry van truckload market, as ad hoc moves can command 2-3 times the average contract pricing, adds the analyst.

Chan says that while lower volume does create some negative operating leverage, its impact is less severe due to fewer lost backhauls and a smaller terminal network compared to LTL.

The analyst writes that Proficient’s stock has faced pressure recently due to an unexpected management departure, a weak third-quarter FY24 operating environment, and ongoing port strikes.

However, Chan notes the equity has overcorrected for these short-term disruptions, which should have minimal impact on 2025 valuations.

The analyst maintains 2024 and 2025 EPS estimates at $0.88 and $1.54, respectively.

Price Action: PAL shares are up 4.55% at $13.80 at the last check Thursday.

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