Stephens has increased its 12-month price target on Rush Enterprises Inc. (NASDAQ:RUSHA) to $80 from $55 while maintaining an Overweight rating, bringing the new objective close to the analyst high target of $83. The stock was trading at $72.01 at the time of the update. According to InvestingPro data cited in the company commentary, RUSHA appears overvalued relative to its Fair Value estimate.
The broker said Rush reported fourth-quarter 2025 results that outpaced both Stephens’ internal model and consensus expectations. The outperformance was driven by higher-than-expected revenue, a reduction in interest expense and a lower effective tax rate, though the company recorded a gross margin that was below forecasts. Over the trailing twelve months, Rush has recorded a gross profit margin of 19.65%.
Management highlighted improving activity in the Class 8 market. The company noted that quoting activity and order intake for Class 8 trucks are picking up, a trend it attributes to increased clarity around tariff developments and the 2027 EPA emission regulations. Rush expects this momentum to translate into higher Class 8 unit sales beginning in the second quarter of 2026.
Parts and service revenue showed resilience in the fourth quarter of 2025, rising 3% year-over-year despite challenging conditions across the industry. The firm sustained strong free cash flow generation through the freight cycle, producing $733 million of free cash flow in fiscal year 2025, even as Class 8 sales declined year-over-year.
Stephens’ note indicated that the company’s robust free cash flow should support strategic capital allocation in fiscal year 2026, including accretive mergers and acquisitions, continued share repurchases and dividends.
In a related corporate action, Rush Enterprises announced a new $150 million stock repurchase program covering both its Class A and Class B common stock. This new authorization replaces the prior program, which was initially set at $150 million and later increased to $200 million; under that earlier program the company had repurchased $199.9 million of shares.
Separately, UBS has reiterated a Neutral rating on Rush Enterprises and maintained a $70.00 price target, leaving its view and valuation unchanged.
The combination of an upward price-target revision from Stephens and an unchanged Neutral stance from UBS illustrates differing viewpoints within the sell-side community even as company fundamentals provide mixed signals. The company’s current market price and InvestingPro’s Fair Value comparison are noted as part of the broader valuation picture.