Susquehanna raises Forward Air stock price target to $43 on potential sale

Investing.com - Susquehanna raised its price target on Forward Air (NASDAQ:FWRD) to $43.00 from $40.00 on Tuesday, while maintaining a Positive rating on the stock. According to InvestingPro data, the stock has shown resilience with a 15.4% return over the past year, despite trading at a relatively high Price/Book multiple of 5.6x.

The research firm cited "transactional and transformational opportunity" for the freight transportation company, noting that it continues to believe "a sale of the business is the most likely outcome."

Forward Air reported second-quarter 2025 adjusted EBITDA of $74 million, which exceeded Susquehanna’s estimate of $66 million and beat consensus expectations by $2 million.

Susquehanna acknowledged ongoing cyclical risks for Forward Air, pointing to "roughly breakeven cash flow" and trailing four-quarter net debt to EBITDA ratio of 5.7x, which provides approximately "1x turn of covenant headroom."

The firm’s updated $43 price target is based on a sum-of-the-parts (SOTP) valuation methodology, reflecting its assessment of Forward Air’s business segments and potential value in a sale scenario.

In other recent news, Forward Air Corporation reported its second-quarter 2025 earnings, highlighting a decline in revenue. The company posted consolidated revenue of $619 million, marking a 3.9% decrease compared to the previous year. Despite this revenue drop, Forward Air’s adjusted earnings per share outperformed expectations, with a reported EPS of ($0.01) against Stifel’s forecast of ($0.20) and the broader consensus of ($0.26). Additionally, the company achieved an adjusted EBITDA of $74 million.

In terms of analyst activity, Stifel has adjusted its price target for Forward Air to $32.00 from $33.00, while maintaining a Buy rating on the stock. The adjustment reflects ongoing macroeconomic concerns. These recent developments have contributed to broader market pressures and investor concerns regarding Forward Air’s future performance.

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