Citi analyst Ariel Rosa maintained a Buy rating on JB Hunt today and set a price target of $170.00.
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Ariel Rosa has given his Buy rating due to a combination of factors that suggest potential for JB Hunt’s stock despite current challenges. The company’s recent earnings report showed a slight improvement over expectations, with EPS of $1.31 surpassing the anticipated $1.28. This indicates some resilience in the face of a weak demand environment, particularly with a notable increase in intermodal loads.
However, Ariel Rosa acknowledges the pressures on JB Hunt’s margins and equipment utilization, which have been affected by depressed truckload rates and excess capacity. Despite these challenges, the company’s significant stock buyback signals confidence in future earnings growth. Additionally, the planned $100 million cost-cutting initiative could enhance operational efficiency, supporting the Buy rating as JB Hunt navigates the current market conditions.
According to TipRanks, Rosa is a 5-star analyst with an average return of 11.9% and a 64.76% success rate. Rosa covers the Industrials sector, focusing on stocks such as FedEx, Old Dominion Freight, and Saia.
In another report released yesterday, Wells Fargo also assigned a Buy rating to the stock with a $150.00 price target.