Jason Seidl, an analyst from TD Cowen, reiterated the Hold rating on Hub Group (HUBG – Research Report). The associated price target was lowered to $46.00.
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Jason Seidl’s rating is based on several factors, including Hub Group’s recent financial performance and market conditions. The company’s fourth-quarter earnings met expectations primarily due to a favorable tax rate, though overall operating profits fell short of forecasts. Despite a 14% increase in intermodal volumes, revenue per load has declined, and pricing pressures are expected to persist at least through the first half of the year.
Moreover, while Hub Group anticipates volume growth in 2025, significant pricing gains are not expected until 2026. The company’s management has been effectively managing costs and capitalizing on logistics opportunities, but the current economic environment and pricing challenges have led to a cautious outlook. Consequently, Seidl has adjusted the price target to $46.00 from the previous $48.00, maintaining a Hold rating on the stock.
Seidl covers the Industrials sector, focusing on stocks such as Covenant Logistics Group, Saia, and ArcBest. According to TipRanks, Seidl has an average return of 22.3% and a 68.39% success rate on recommended stocks.