Highlights

  • Price target raised to USD101 from USD 84, based on 13.0x revised P/E multiple
  • ArcBest posted Q1 EPS of USD0.51 vs forecast of USD0.52 on USD967M revenue
  • Stock down 43.45% in six months, now trading at 8.21x trailing P/E

Goldman Sachs (NYSE: GS) upgraded ArcBest Corp (NASDAQ: ARCB) from Neutral to Buy on Monday, raising its price target to USD 101, up from a previous estimate of USD 84. The revised valuation is anchored in an updated price-to-earnings (P/E) multiple of 13.0x, up from 11.0x, moving closer to ArcBest’s one standard deviation average of 14.0x.

Despite maintaining an EPS forecast of USD 7.75 over the next four quarters, analyst Jordan Alliger cited valuation metrics as the primary reason for the shift in rating. ArcBest recently reported Q1 2025 earnings, narrowly missing both top and bottom-line expectations. The company delivered EPS of USD 0.51, slightly below the USD 0.52 forecast, and revenue of USD 967.08 million, falling short of the expected USD 989.28 million. Revenue declined 7% year-over-year. Despite the miss, analysts acknowledged operational improvements and emphasized retention and pricing efforts in a difficult freight market.

Market sentiment remains mixed. While Goldman Sachs projects upside, Stifel adjusted its price target down to USD83 from USD102, citing industry-wide headwinds but maintaining a Buy rating. ArcBest’s stock has declined 43.45% over the past six months, underlining investor caution. However, Goldman’s valuation case aligns with recent revisions in the freight sector, including re-ratings of peers like Old Dominion Freight Line (NASDAQ: ODFL) and Saia Inc. (NASDAQ: SAIA).

In leadership developments, ArcBest named Mac Pinkerton as chief operating officer of its asset-light division, effective January 2026. Pinkerton joins from C.H. Robinson, bringing logistics sector experience amid strategic restructuring within the company.