Overview
UBS has reaffirmed its Neutral rating on Rush Enterprises Inc. and kept a $70.00 price target intact. The company’s most recent trading level stands at $62.72. Data show Rush’s price-to-earnings ratio is 17.37 and its market capitalization is approximately $4.77 billion, suggesting the shares are roughly in line with current market valuation measures.
Business profile
Rush Enterprises operates one of North America’s larger commercial vehicle dealership networks. Its franchise lineup includes manufacturers such as Peterbilt, International, Hino, Ford, and Isuzu. The company’s operations span new and used sales of heavy-duty and medium-duty trucks, as well as aftermarket parts, service, and body shop activities.
Valuation and financial health
Analyst coverage indicates the stock is trading below the UBS target but not at an obvious discount, given the stated P/E and market-cap figures. An Altman Z-Score of 4.24 has been noted for Rush Enterprises, a level that indicates a relatively strong standing on conventional measures of financial stability. Over the past six months, the company’s shares have appreciated by 15.39%.
Recent quarter and share repurchase activity
In its third-quarter 2025 report, Rush Enterprises posted earnings per share of $0.83, short of the $0.87 expected by analysts - a variance representing a 4.6% shortfall. Revenue for the period was $1.9 billion, surpassing the forecasted $1.78 billion and reflecting a 5.62% upside relative to consensus estimates.
Alongside the earnings release, the company unveiled a new $150 million stock repurchase program that replaces the previous program. The prior repurchase authorization, which was announced in December 2024 and later expanded in May 2025, had nearly reached its limit with $199.9 million of shares bought back.
Analyst implication
UBS’s maintained Neutral rating implies an expectation that Rush Enterprises’ shares will likely track with broader market performance over the relevant investment horizon. The combination of a revenue beat, an EPS miss, a robust Altman Z-Score, and an active repurchase initiative frames a scenario of operational resilience with mixed near-term earnings signals.
Context for investors
Investors weighing Rush Enterprises should consider the balance between the company’s stable financial indicators and the recent earnings shortfall. The new repurchase program signals capital allocation preferences by management, while the revenue outperformance highlights demand for the company’s sales and service offerings. These elements are all part of the picture UBS and other market participants may be weighing in maintaining or adjusting coverage.
Key metrics referenced in this report
- Current share price: $62.72
- UBS price target: $70.00
- P/E ratio: 17.37
- Market capitalization: $4.77 billion
- Altman Z-Score: 4.24
- Six-month price change: +15.39%
- Q3 2025 EPS: $0.83 (vs. $0.87 expected)
- Q3 2025 Revenue: $1.9 billion (vs. $1.78 billion expected)
- New repurchase program: $150 million
- Previously repurchased under prior program: $199.9 million