ArcBest, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Jason Seidl from TD Cowen reiterated a Hold rating on the stock and has a $67.00 price target.
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Jason Seidl has given his Hold rating due to a combination of factors impacting ArcBest’s current and future performance. Despite management’s efforts to enhance technology and efficiency, the company is still grappling with challenges from a sluggish industrial economy, which has led to a reduction in near-term estimates. However, there is potential for long-term growth, as management anticipates earnings could nearly double from 2024 levels.
ArcBest’s strategy includes focusing on its core less-than-truckload (LTL) business and expanding its small and medium-sized business (SMB) truckload freight share. While the company is making strides in dynamic pricing and yield management, the benefits are yet to be fully realized in financial results. The competitive landscape for SMB freight remains intense, but ArcBest’s approach to targeting a fragmented customer base could yield positive outcomes. Overall, the Hold rating reflects a cautious optimism, balancing current economic headwinds with future growth opportunities.
In another report released today, UBS also maintained a Hold rating on the stock with a $80.00 price target.