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On Tuesday, BofA Securities made a notable change in its stance on ArcBest Corp (NASDAQ:ARCB), upgrading the company’s stock rating from Underperform to Neutral. Accompanying this upgrade, the firm also increased the price target for ArcBest stock to $74.00, marking a significant rise from the previous target of $63.00. With a current market capitalization of $1.54 billion and trading at a P/E ratio of 8.2x, InvestingPro analysis suggests the stock is currently undervalued relative to its Fair Value.
The adjustment in rating and price target follows a discussion with ArcBest’s CFO, Matt Beasley, which led analysts at BofA Securities to adopt a more positive outlook on the company’s performance. The conversation provided insights into the company’s ongoing progress and its ability to mitigate pressure on core yields while continuing to gain momentum with its core customers. This optimism is reflected in broader market sentiment, with InvestingPro data showing four analysts recently revising their earnings estimates upward, though investors should note the stock’s high volatility with a beta of 1.67.
BofA Securities’ analysts cited the strides ArcBest is making in its core Less-Than-Truckload (LTL) operations as a key factor for the improved rating. These additive gains have prompted the firm to raise their price objective to $74, based on a 12.5 times multiple of the estimated 2025 earnings per share (EPS), an increase from the previous 11 times multiple.
Furthermore, BofA Securities revised its earnings forecasts for ArcBest. The firm now expects a 1% increase in the second quarter of 2025 and full-year 2025 EPS, adjusting the figures to $1.60 and $5.85, respectively. This revision reflects the firm’s confidence in ArcBest’s ability to perform above the midpoint of its historical 5-year price-to-earnings (P/E) range of 8 to 14 times.
In other recent news, ArcBest Corp reported its first quarter 2025 earnings, which fell short of expectations. The company posted an earnings per share (EPS) of $0.51, slightly below the forecasted $0.52, and reported revenue of $967.08 million, missing the expected $989.28 million. This represents a 7% decrease in revenue year-over-year. Despite the earnings miss, ArcBest maintained a Buy rating from Stifel analysts, although they lowered the price target from $102 to $83. Goldman Sachs, on the other hand, upgraded ArcBest’s stock rating from Neutral to Buy, raising the price target to $101.
Additionally, ArcBest announced a significant leadership change, appointing Mac Pinkerton as the new chief operating officer of its asset-light logistics division, effective January 2026. Pinkerton joins from C.H. Robinson, bringing extensive industry experience. The company continues to focus on operational efficiency and customer retention strategies amid challenging market conditions. ArcBest’s management has expressed a commitment to enhancing digital capabilities and expanding its customer base, especially among small and medium-sized businesses. These developments reflect ArcBest’s strategic efforts to navigate the current economic landscape and position itself for future growth.
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