ArcBest Corp (ARCB) PT Lowered to $99 at BofA Securities

BofA Securities analyst Ken Hoexter lowered the price target on ArcBest Corp (NASDAQ: ARCB) to $99.00 (from $102.00) while maintaining a Underperform rating.

The analyst comments "ARCB posted its mid-3Q24 update, with quarter-to-date volumes worse than our targets, yield growth decelerating rapidly (as it moves past Yellow’s July 28, 2023 shutdown comps), and it expects a worse-than-seasonally normal operating ratio performance. August Tons/Day declined 10% year-year, moderating slightly from -12.5% in July, to average -11% QTD (we target -10%, from -8%). August Weight/Shipment remains down significantly, falling 9% year-year, moderating from -13.7% in July, to average -11% QTD (we are -10%, from -7%). August Revenue/Hundredweight (CWT) was up 4% year-year, decelerating from +15.4% in July, to average +9.0% QTD (we target +7.5%, from 7.0%). August LTL Revenue/Day declined 7% yr-yr, decelerating from +1.0 in July, to average - 3% QTD (we target -4.6%, from -2.8%). ARCB reiterated its target for 3Q24 tonnage to decline yr-yr, as some core business it won post Yellow’s bankruptcy was project-related and some business shifted to others (indicating share loss). Nevertheless, ARCB sees pricing remaining rational. It is implementing a 5.9% general rate increase Sept 9."

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