Analyst Jason Seidl of TD Cowen reiterated a Hold rating on ArcBest, reducing the price target to $72.00.
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Jason Seidl has given his Hold rating due to a combination of factors impacting ArcBest’s performance. The company’s second-quarter results fell short of both Seidl’s and the market’s expectations, with earnings per share missing the forecast. Although there was a positive increase in volume, driven by new core LTL wins, the pricing environment showed signs of weakness, which could limit operating leverage and negatively affect the stock.
Seidl noted that while ArcBest’s contract renewals showed some growth, the rate of increase has decelerated compared to previous quarters. Additionally, the broader less-than-truckload (LTL) market is facing pricing headwinds, which could further pressure yields. Despite some positive indicators, such as tonnage growth outperforming peers, the overall demand environment remains uncertain, and the anticipated benefits from industrial spending initiatives are not expected to have an immediate impact. These mixed signals contribute to the decision to maintain a Hold rating, with a slightly adjusted price target.
In another report released today, Bank of America Securities also maintained a Hold rating on the stock with a $78.00 price target.