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Wells Fargo downgrades ArcBest to Equal Weight on softer demand outlook

Wells Fargo downgrades ArcBest to Equal Weight on softer demand outlook

As previously reported, Wells Fargo downgraded ArcBest to Equal Weight from Overweight with a price target of $112, down from $122, on softer demand outlook and weaker incrementals. The firm has lowered its volume outlook for ArcBest in 2025 to reflect a more competitive LTL market, which has pushed its EPS estimates down by 8% and 6%, respectively, in 2025 and 2026 as Wells is modeling high incremental margins for the company given its new Teamster contract. The firm also tempered its second half of 2024 yield outlook.

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