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On Monday, Goldman Sachs analyst Jordan Alliger upgraded ArcBest Corp (NASDAQ:ARCB) stock rating from Neutral to Buy, and increased the price target to $101 from the previous $84. Alliger’s decision is based on a revised price-to-earnings (P/E) multiple, which now stands at approximately 13.0x, up from the earlier 11.0x. This adjustment brings the multiple closer to ArcBest’s one standard deviation (SD) average of around 14.0x. According to InvestingPro data, ARCB currently trades at a P/E ratio of 8.21x, suggesting potential upside to Goldman’s target multiple.
The analyst maintained the earnings per share (EPS) forecast for the next four quarters (Q5-Q8) at $7.75, unchanged from previous estimates. The new P/E multiple is a blend of 100% asset-based and 0% asset-light multiples, reflecting a strategic focus on the asset-based side of ArcBest’s business. Recent InvestingPro data shows the company achieved $7.55 in diluted EPS over the last twelve months, though forecasts suggest earnings may face some pressure, with 13 analysts recently revising their estimates downward.
The upgrade and price target increase reflect a positive outlook on ArcBest’s financial performance, with the new target representing a significant potential upside from the previous target. The P/E multiple adjustment is aligned with the analyst’s approach to raising multiples for similar companies in the sector, such as Old Dominion Freight Line (NASDAQ:ODFL) and Saia Inc. (NASDAQ:SAIA). While the stock has experienced a significant decline of 43.45% over the past six months, InvestingPro analysis indicates the company maintains a FAIR overall financial health score, with particularly strong marks in relative value and profitability metrics.
ArcBest’s stock is now positioned favorably in Goldman Sachs’ coverage, with the raised target suggesting confidence in the company’s ability to perform well in the upcoming quarters. The analyst’s comments underscore a methodical approach to valuation, taking into account industry standards and ArcBest’s historical performance metrics.
Investors will likely monitor ArcBest’s stock performance closely, following this upgrade and the raised price target, to see if the company’s financial results align with Goldman Sachs’ projections. The market’s response to this new rating and target will be observed in the trading sessions to come.
In other recent news, ArcBest Corp reported its first quarter 2025 earnings, revealing a slight miss on both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $0.51, just below the forecasted $0.52, and reported revenue of $967.08 million, falling short of the $989.28 million expectation. Revenue decreased by 7% year-over-year, with operational improvements noted, though market conditions remain challenging. Despite these results, ArcBest maintained a focus on customer retention and pricing strategies as key strengths. Stifel analysts adjusted their outlook on ArcBest, reducing the price target to $83.00 from the previous $102.00, while maintaining a Buy rating. They noted that ArcBest’s performance was not overly negative, considering broader challenges in the freight industry. In personnel news, ArcBest announced the appointment of Mac Pinkerton as the chief operating officer of its asset-light logistics division, effective January 2026. Pinkerton joins from C.H. Robinson, bringing extensive experience in the logistics industry.
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