Fadi Chamoun, an analyst from BMO Capital, reiterated the Hold rating on Hub Group (HUBG – Research Report). The associated price target was lowered to $50.00.
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Fadi Chamoun’s rating is based on the Hub Group’s recent performance and future outlook, which present a mixed picture for investors. The company’s fourth-quarter results were below expectations, primarily due to underperformance in its Logistics segment, with adjusted EBIT falling significantly short of consensus estimates. This shortfall was somewhat mitigated by stronger results in the Intermodal & Transportation Services, which saw higher-than-expected EBIT due to robust peak season activities.
Looking ahead, the company’s guidance for fiscal 2025 suggests earnings per share below prior consensus forecasts, reflecting potential challenges in consumer demand and market conditions. While the Intermodal segment shows promising volume growth, pricing pressures persist due to excess capacity in the truckload and intermodal marketing company markets. Overall, these factors contribute to a cautious outlook, justifying the Hold rating as the company navigates these headwinds.
Chamoun covers the Industrials sector, focusing on stocks such as JB Hunt, CH Robinson, and CAE. According to TipRanks, Chamoun has an average return of 13.9% and a 63.10% success rate on recommended stocks.
In another report released today, TD Cowen also reiterated a Hold rating on the stock with a $46.00 price target.