ArcBest stock price target lowered to $78 at BofA on LTL weakness

Published 30/07/2025, 21:38
ArcBest stock price target lowered to $78 at BofA on LTL weakness

Investing.com - BofA Securities has reduced its price target on ArcBest Corp (NASDAQ:ARCB) to $78.00 from $86.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, analyst targets for ARCB range from $73 to $140, with the company currently trading at an attractive P/E ratio of 9.3x.

The transportation company reported adjusted second-quarter 2025 earnings per share of $1.36, representing a 32% decline from $1.98 in the same period last year and falling below both BofA’s estimate of $1.60 and the Street consensus of $1.46. InvestingPro analysis indicates the company remains profitable with trailing twelve-month revenue of $4.1 billion, though experiencing revenue decline of 5.7%. InvestingPro subscribers have access to 12 additional key insights about ARCB’s financial health and growth prospects.

The earnings miss was primarily driven by ArcBest’s Asset-Based ABF Freight less-than-truckload (LTL) segment, which saw its operating ratio improve by 310 basis points quarter-over-quarter, at the low end of typical seasonal improvement of 300-400 basis points. Despite current challenges, the company maintains a FAIR financial health score according to InvestingPro’s comprehensive analysis, available in the detailed Pro Research Report.

ArcBest reported that June tonnage per day increased 2.8% year-over-year, below BofA’s target of 6%, with the company citing housing market and industrial softness as factors that prevented a typical seasonal lift in volumes.

For the third quarter of 2025, ArcBest anticipates its LTL operating ratio will improve in line with normal seasonality, approximately 70 basis points better than the second quarter, while July shipments were up 2% year-over-year despite declines in the manufacturing vertical.

In other recent news, ArcBest Corp reported its second-quarter 2025 earnings, revealing results that did not meet analyst expectations. The company announced an adjusted earnings per share (EPS) of $1.36, which was below the projected $1.46. Additionally, ArcBest’s revenue for the quarter was $1.02 billion, falling short of the anticipated $1.04 billion. These earnings and revenue figures are significant for investors as they reflect the company’s financial performance. Following these developments, ArcBest’s stock experienced a decline. Analyst firms have not yet provided any upgrade or downgrade regarding ArcBest’s stock following the earnings report. Investors will be closely watching for any future announcements or analyses from financial firms. These recent developments are crucial for those tracking ArcBest’s financial health and market performance.

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