Bank of America Securities analyst Ken Hoexter reiterated a Hold rating on ArcBest yesterday and set a price target of $84.00.
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Ken Hoexter has given his Hold rating due to a combination of factors tied to ArcBest’s near‑term operating pressures and only modest upside to his target price. He notes that less-than-truckload (LTL) margins in the Asset-Based segment are running weaker than normal seasonality, with management expecting a larger-than-usual deterioration in operating ratio from the third to the fourth quarter, driven by a soft freight environment and fewer working days. While some heavier project freight in November provided a temporary lift, the company has not yet seen a sustained tightening in the broader truckload market, and recent readthroughs from peers suggest ongoing softness, prompting slight reductions to his near-term Asset-Based estimates.
At the same time, the Asset-Light segment is under pressure, with year-over-year revenue per day down in the quarter to date and brokerage margins likely to be squeezed by supply-driven spot rate gains, even if expedited and managed transportation help partially offset the weakness. Hoexter acknowledges that earnings are likely near a trough and expects ArcBest to perform better than its historical pattern in the upcoming 4Q-to-1Q seasonal step-down, as share gains with core customers help counter pricing headwinds. Nevertheless, he trims his earnings forecasts and sees only limited valuation upside from the current share price to his price objective of $84, which is set at a higher multiple to reflect eventual recovery but not enough to justify a more constructive rating at this stage. Accordingly, he maintains a Neutral (Hold) stance, balancing longer-term recovery potential against current margin and demand headwinds.
In another report released on December 9, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $75.00 price target.