Cowen Raises ArcBest Price Target By 16%, Maintains Outperform Rating

Cowen analyst Jason Seidl raised ArcBest Corp's ARCB price target to $115 (implying an upside of 39.8%) from $99 and maintained an Outperform rating on the shares.
Seidl mentioned the company released its preliminary 3Q trends with consolidated top-line growth and sequential OR improvement above prior expectations.
He Adds that its new logistics acquisition of MoLo could eventually lead to a higher multiple for the shares.
Earlier, the company announced an agreement to acquire MoLo Solutions, LLC, a Chicago-based truckload freight brokerage, for $235 million.
MoLo's FY20 revenue equaled $274 million, an increase of more than 100% year-over-year, and expects revenue of ~$600 million in FY21.
The transaction calls for the potential for additional cash consideration based on the achievement of Adjusted EBITDA targets for years 2023 through 2025. The acquisition is expected to close in the fourth quarter of 2021.
ArcBest held cash and cash equivalents of $362.62 million as of June 30, 2021.
Price Action: ARCB shares are trading higher by 6.68% at $81.91 on the last check Thursday.

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