UPDATE: Bank of America Downgrades ArcBest Corporation to Neutral, Lowers PT as New Hire Costs Pause Upside

In a report published Monday, Bank of America analyst Ken Hoexter downgraded the rating on

from Buy to Neutral, and lowered the price target from $42.00 to $39.00. In the report, Bank of America noted, “We are lowering our rating on ARCB's shares to Neutral from Buy given rising costs at ABF Freight, its LTL carrier. We lower our 3Q14, 2014, and 2015 EPS estimates 3%, 4%, and 5%, to $0.70, $1.70, and $2.30, from $0.73, $1.75, and $2.40, respectively. Our price objective falls to $39 from $42, based on a 17x EPS multiple (from 17.5x), near the upper end of its historical 7x-18x range, but below its recent upper teen to low 20's levels given that the company's ability to rapidly grow EPS may be slowing.” ArcBest Corporation closed on Friday at $35.62.