J.B. Hunt’s Operational Strengths and Growth Potential Justify Buy Rating

Christopher Kuhn, an analyst from Benchmark Co., maintained the Buy rating on JB Hunt. The associated price target remains the same with $165.00.

Christopher Kuhn has given his Buy rating due to a combination of factors that highlight J.B. Hunt’s operational strengths and potential for future growth. The company’s second-quarter earnings per share were in line with expectations, and core operations slightly exceeded estimates despite higher interest and tax expenses. Revenue was flat year-over-year but surpassed expectations, driven by better-than-anticipated performance in the Intermodal and Truckload segments.
Moreover, the Dedicated business showed significant improvement, with operating profit exceeding estimates by 14%, benefiting from the maturation of new business and effective cost management. While some segments like ICS still face challenges, there is an expectation of profitability improvement in the coming years. The overall positive performance, particularly in key segments, supports the Buy rating as J.B. Hunt continues to manage its operations effectively and positions itself for future growth.

In another report released today, Citi also maintained a Buy rating on the stock with a $170.00 price target.

Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of JBHT in relation to earlier this year.