ArcBest price target lowered to $73 from $85 at Stifel

Stifel analyst J. Bruce Chan lowered the firm’s price target on ArcBest (ARCB) to $73 from $85 and keeps a Buy rating on the shares following quarterly results. The firm notes that while 3 LTL Operating Ratio was an early step toward meaningful mid-term earnings growth target runway that the company laid out at its recent investor day, there were other things that have the Street still skeptical. Namely, Q4 OR guidance suggests that opportunity is not as divorced from macro influence as it needs to be, and transactional pricing is still a bit of a boogeyman with regard to in-line or better-than market yield improvement. But at current valuation, Stifel is more optimistic, especially this early in the journey and with a stable network and service levels. The company has a credible plan, and for value-oriented shoppers, the firm believes ArcBest is a relatively inexpensive entree into LTL exposure.