Truist has adjusted its outlook on ArcBest Corporation (ARCB, Financial), revising the price target from $93 to $90 while maintaining a Buy rating on the stock. This move is part of a broader assessment of the Transportation & Logistics sector.
The adjustment reflects a tempered macroeconomic environment, with the sector effectively experiencing a freight recession for over 30 months. Despite this, the tonnage index remained stable through 2024 and into 2025, bolstered by growth in U.S. GDP, retail sales, and e-commerce volumes.
While these factors have sustained the demand for transportation services, the truckload market faced pricing pressures, impacting revenue generation. The report suggests this dynamic market environment requires strategic adjustments and close monitoring by stakeholders.
