In a report released today, Ken Hoexter from Bank of America Securities reiterated a Buy rating on JB Hunt (JBHT – Research Report), with a price target of $170.00.
Ken Hoexter has given his Buy rating due to a combination of factors influencing J.B. Hunt’s performance and future prospects. The company has demonstrated solid intermodal volume growth, particularly with increased container volumes at key ports like Los Angeles and Long Beach. Despite the added costs associated with repositioning empty containers, J.B. Hunt is capitalizing on opportunities such as transloading and truck-to-intermodal conversions, which are appealing to customers due to competitive contract rates compared to trucking.
Furthermore, while the dedicated segment faces some macroeconomic pressures and potential fleet losses, J.B. Hunt maintains a healthy pipeline and continues to target modest revenue and operating income growth. Although the price objective has been adjusted to $170 due to near-term macroeconomic uncertainties and tariff concerns, the Buy rating is reiterated as earnings are expected to recover from current trough levels. The valuation remains favorable, with the target multiple reflecting a more normalized earnings outlook in the coming years.