ArcBest Corp (ARCB) PT Lowered to $150 at Stifel

Stifel analyst J. Bruce Chan lowered the price target on ArcBest Corp (NASDAQ: ARCB) to $150.00 (from $159.00) while maintaining a Buy rating.

The analyst comments "ArcBest Corporation reported disappointing 1Q24 earnings results amidst stagnant freight fundamentals and some bleed-out of heavier weight volume to truckload as that mode contends with bargain-basement pricing. Ultimately, we like the longer term opportunity at ArcBest. The stock is priced at a material discount to non-union peers, with an opportunity for the Asset-based business to benefit from most of the same structural tailwinds. Our concern is that LTL seems to be a share donor at the moment, which is not ideal because this division has the most operating leverage and the most current potential. For this stock to rate closer to peers, we think investors need to hear more about overall pricing growth (not core vs. transactional distinctions), service quality, and overall density improvements, and less about technological distractions like Vaux and forays into Autonomous...unless there are clear and demonstrable ROIs to the primary business—not write-offs."

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