Highlights

  • BofA has upgraded ArcBest from Underperform to Neutral, raising price target by 17%.
  • 2025 EPS forecast increased 1% to USD 5.85; stock trades at P/E 8.2x.
  • ArcBest reports Q1 revenue down 7% YoY; new COO appointed for logistics division.

On Tuesday, BofA Securities upgraded ArcBest Corp (NASDAQ: ARCB) from Underperform to Neutral, increasing its price target to USD 74 from USD 63. This adjustment follows discussions with ArcBest’s CFO, Matt Beasley, and reflects a shift in the brokerage’s outlook on the company’s performance. ArcBest currently holds a market capitalization of USD 1.54 billion and trades at a price-to-earnings (P/E) ratio of 8.2 times.

The upgrade was largely driven by perceived progress in ArcBest’s core Less-Than-Truckload (LTL) operations, prompting BofA to raise the price multiple applied to 2025 earnings estimates from 11 times to 12.5 times. The firm now projects a 1% increase in second quarter and full-year 2025 earnings per share (EPS), setting forecasts at USD 1.60 and USD 5.85, respectively. These figures indicate confidence that ArcBest will perform above the midpoint of its historical five-year P/E range of 8 to 14 times.

In recent company performance, ArcBest reported first quarter 2025 earnings per share of USD 0.51, slightly below analyst expectations of USD 0.52. Revenue for the quarter totaled USD 967.08 million, missing estimates of USD 989.28 million and representing a 7% decline year-over-year. Despite this, Stifel analysts maintained a Buy rating while lowering their price target to USD 83. Separately, Goldman Sachs upgraded ArcBest’s rating from Neutral to Buy with a price target of USD 101.

ArcBest also announced a key leadership change with the appointment of Mac Pinkerton as chief operating officer of its asset-light logistics division, effective January 2026. Pinkerton joins from C.H. Robinson, bringing extensive experience to the role. The company continues efforts to improve operational efficiency, enhance digital capabilities, and expand its customer base amid ongoing market challenges.