Morgan Stanley analyst Ravi Shanker has maintained their neutral stance on JBHT stock, giving a Hold rating today.
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Ravi Shanker has given his Hold rating due to a combination of factors influencing J.B. Hunt’s current market position. The company managed to slightly outperform expectations in the second quarter, primarily due to the strength in its Dedicated segment, which offset challenges in the Intermodal (IM) segment. However, despite the positive developments, there are persistent cyclical and structural risks that continue to pose challenges for the company.
Shanker notes that while J.B. Hunt has announced a $100 million cost savings plan aimed at improving productivity, the effectiveness of such initiatives in the freight transportation sector has historically been mixed. Additionally, the company’s earnings per share are expected to remain within the $7-8 range, with ongoing pressures from cost inflation and competitive risks in various segments. The key question remains whether J.B. Hunt will transition into a primarily Dedicated trucking company, which could influence its valuation multiple in the market.
According to TipRanks, Shanker is an analyst with an average return of -1.3% and a 47.96% success rate. Shanker covers the Industrials sector, focusing on stocks such as FedEx, Allegiant Travel Company, and JB Hunt.
In another report released today, Barclays also maintained a Hold rating on the stock with a $145.00 price target.