Wolfe upgrades ‘LTL value play’ ArcBest to Outperform

As previously reported, Wolfe Research analyst Scott Group upgraded ArcBest (ARCB) to Outperform from Peer Perform with a $132 price target. The stock is up by 21.5% over the past two or so months since news first emerged in mid-June about Yellow Corp’s (YELL) bankruptcy, but this is least among the Less-Than-Truckload, or LTL, truckers despite what the firm estimates should be the most EPS accretion in percentage terms, the analyst tells investors. This relative underperformance provides a buying opportunity for what Wolfe calls a “LTL value play.”