Stephens lowers Rush Enterprises stock price target to $60 on truck sales uncertainty

Published 04/08/2025, 17:14
Stephens lowers Rush Enterprises stock price target to $60 on truck sales uncertainty

Investing.com - Stephens has lowered its price target on Rush Enterprises Inc. (NASDAQ:RUSHA) to $60.00 from $61.00 while maintaining an Overweight rating on the stock.

The truck dealership company reported second-quarter 2025 results that exceeded both Stephens’ and consensus expectations, with stronger-than-modeled growth in parts and service offsetting softer unit sales.

Visibility into improvement in Class 8 truck sales remains limited, according to Stephens, with soft truckload fundamentals persisting and uncertainty around tariffs and emission regulations causing customers to delay vehicle acquisition decisions.

On a positive note, parts and service trends improved in the second quarter, and Rush Enterprises expects stability in the third quarter despite the weak backdrop, partly due to improved technician retention, which reached a 12-month low in turnover during the second quarter.

Free cash flow generation remains strong despite the uncertain Class 8 unit sales environment, and Stephens expects management to continue returning cash to shareholders through repurchases and dividends in the absence of attractive merger and acquisition opportunities.

In other recent news, Rush Enterprises reported its second-quarter results for 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.90, exceeding the forecasted $0.77. Revenue also outperformed projections, reaching $1.93 billion compared to an anticipated $1.90 billion. These results highlight a strong performance for the quarter. Analysts had predicted lower figures, making the company’s actual performance noteworthy. The earnings and revenue figures are critical for investors assessing the company’s financial health. These developments reflect Rush Enterprises’ ability to exceed market expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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