In a report released today, Jason Seidl from TD Cowen reiterated a Hold rating on Hub Group, with a price target of $36.00.
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Jason Seidl has given his Hold rating due to a combination of factors impacting Hub Group’s current and future performance. The company met expectations for the third quarter, with adjusted earnings per share aligning with consensus estimates and a top-line beat driven by flat intermodal volumes. However, there are concerns about the near-term pressures as the company lowered its guidance at the midpoint, anticipating a slowdown in volumes post-Thanksgiving, which could affect short-term performance.
Despite these challenges, there is optimism about the long-term growth potential from a transcontinental merger expected to unlock significant freight opportunities. Hub Group is well-positioned to capture market share through this merger, which could lead to increased volumes and revenue. However, given the current market conditions and the anticipated decline in earnings as the year progresses, a Hold rating reflects a balanced view of the risks and opportunities facing the company.
In another report released today, Barclays also maintained a Hold rating on the stock with a $38.00 price target.