Analyst Ken Hoexter of Bank of America Securities reiterated a Buy rating on JB Hunt, boosting the price target to $171.00.
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Ken Hoexter has given his Buy rating due to a combination of factors influencing J.B. Hunt’s performance and outlook. Despite some pressure on intermodal volumes due to tariffs on China, the company is experiencing significant growth in the East, supported by strong rail services that facilitate truck-to-rail conversions. Although there is a mix impact from focusing on volume growth in backhaul lanes, the overall intermodal pricing is expected to remain stable or slightly increase year-over-year. This strategic focus is anticipated to result in a 2% year-over-year increase in intermodal loads for the second quarter of 2025.
Additionally, J.B. Hunt is targeting net growth in its Dedicated fleet in the second half of 2025, which is expected to bring modest revenue and operating income gains. While the addition of new fleet units may initially impact profitability due to start-up costs, these costs typically normalize within a few months. Ken Hoexter has increased the price objective for J.B. Hunt to $171, reflecting a valuation based on a forward-looking earnings multiple that aligns with the company’s historical range and anticipates earnings growth from a low point in 2025.
According to TipRanks, Hoexter is a 3-star analyst with an average return of 2.0% and a 50.20% success rate. Hoexter covers the Industrials sector, focusing on stocks such as CSX, XPO, and Werner Enterprises.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a $175.00 price target.