Our $89 target price is based on a target multiple of 13.5x on our 2026 EPS estimate, slightly above the average of its long-term P/E range of 8.5x to 15.5x forward earnings. We think the growth story for ARCB remains compelling with current valuations discounting potential upside on ARCB’s strategy.

Key downside risks include management execution to balance transactional and core business exposure as the volume environment continues to fluctuate. We also see risks to pricing as key LTL players have been working to improve service standards and consistency, which could pose a risk for ARCB’s pricing should its service improvement initiatives not materialize.