ArcBest Corp (ARCB) PT Lowered to $81 at Stifel

Stifel analyst J. Bruce Chan lowered the price target on ArcBest Corp (NASDAQ: ARCB) to $81.00 (from $93.00) while maintaining a Buy rating.

The analyst commented, "ArcBest reported 2Q25 adjusted EPS of $1.36; lower than our $1.44 estimate and the Street's $1.47. Quarterly revenue was 2% shy of consensus forecasts with a 10bp consolidated Operating Ratio (OR) miss. Against our model, Less-than-Truckload (LTL) volumes trended 1.5% better than we'd expected, more than offset by gross yield progression that was 2.1% worse than we expected, resulting in segment margins that were 90bp behind our target. Brokerage division revenue was 6% behind our model, but margins were 70bp ahead, as cost control initiatives moved profitability into the black for the first time in two years. July revenue trends are roughly consistent: a bit softer than what we're modeling, though margins QTD are in line-to-slightly-better. Core elements of the LTL business are healthy, in our view, and brokerage is less of (or no longer) a drag as that business chips away at inefficiencies and the market tightens behind asset-based."

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