Jefferies has increased its 12-month price objective for ArcBest Corp (NASDAQ: ARCB) to $110.00 from $95.00 and retained a Buy rating on the freight transportation and logistics provider.
The analyst decision follows ArcBest’s recent fourth-quarter results, where Jefferies noted the Asset-Based operating ratio performed better than feared. The firm also expressed approval of the company’s quarterly results and its outlook for the upcoming first quarter.
ArcBest shares are trading at $90.22, while analyst targets span a wide range from $77 to $120, according to InvestingPro data. That dispersion of estimates leaves room for potential upside relative to current levels. The stock has exhibited notable momentum, rising by more than 29% over the past six months.
On a trailing-twelve-month basis the company generated $4.01 billion in revenue, but its gross profit margin remains weak at 7.79%, InvestingPro data show. Jefferies flagged the margin data while also projecting that ArcBest’s margin profile could do better than normal seasonality in the first quarter of 2026, despite an environment of soft freight demand.
While Jefferies kept its overall estimates for the year unchanged, its commentary emphasized the company’s potential for substantial earnings expansion in 2027 and 2028, driven by operating leverage that the research firm characterized as occurring at "very high incremental margins."
ArcBest operates an Asset-Based segment that includes ABF Freight, providing less-than-truckload shipping services alongside other freight transportation solutions. The company carries a market capitalization of $2.02 billion, is described as operating with moderate debt levels, and has a long record of returning cash to shareholders through dividends for 24 consecutive years, currently yielding 0.53%.
Investors took note of the company’s latest quarterly financials. Adjusted earnings per share for the fourth quarter of 2025 came in at $0.36, below the $0.42 expectation, representing a 14.29% negative surprise for the consensus estimate. At the same time, ArcBest surpassed revenue forecasts by reporting $973 million versus an anticipated $968.1 million.
The mixed results - a revenue beat alongside an EPS miss - underline the challenges facing the logistics company amid subdued freight demand. As of now, analyst firms have not issued new upgrades or downgrades in response to the earnings announcement. Market participants and analysts are positioned to watch how ArcBest navigates the months ahead and whether margins and earnings iterate toward the profile Jefferies expects for 2027 and 2028.