TD Cowen analyst Jason Seidl reiterated a Hold rating on ArcBest today and set a price target of $64.00.
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Jason Seidl has given his Hold rating due to a combination of factors impacting ArcBest’s financial outlook. Despite ArcBest’s better-than-expected performance in the third quarter, the company has lowered its expectations for the fourth quarter significantly. This adjustment is largely due to weak industrial demand and challenges in maintaining margins, despite efforts to improve productivity. The macroeconomic environment is not providing support, which may pose challenges for ArcBest as it moves towards 2026.
ArcBest’s asset-based business is expected to experience a substantial decline in operating ratio, which is projected to be worse than both historical averages and its peers. This decline could result in a break-even run rate for the first quarter, suggesting potential earnings of approximately $0.25. Although there have been positive developments, such as new core shippers and shipment growth, the overall volatility in business mix and the soft macroeconomic conditions contribute to the Hold rating, as these factors may lead to near-term margin dilution.
According to TipRanks, Seidl is a 5-star analyst with an average return of 20.3% and a 62.73% success rate. Seidl covers the Industrials sector, focusing on stocks such as CSX, CH Robinson, and Covenant Logistics Group.
In another report released on November 1, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $81.00 price target.