Benchmark Co. analyst Christopher Kuhn maintained a Buy rating on Hub Group today and set a price target of $40.00.
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Christopher Kuhn has given his Buy rating due to a combination of factors that highlight Hub Group’s strategic positioning for future growth. Despite experiencing stable but sub-seasonal volumes in the second quarter, Hub Group’s domestic intermodal volumes have remained steady, supported by solid rail service and favorable pricing dynamics. The company’s ability to convert truckload customers to intermodal services, particularly in the eastern and now western networks, is a positive indicator of its growth potential.
Furthermore, the recent acquisition of Marten Transport’s Intermodal division is expected to significantly enhance Hub Group’s temperature-controlled intermodal capabilities and offer cross-selling opportunities within its existing network. This acquisition is anticipated to be accretive starting in the fourth quarter of 2025. While the brokerage segment faces pressure, the company’s strong cost controls and new rail agreements position it well for future intermodal volume growth. These strategic moves, combined with a favorable price target, underpin Kuhn’s Buy rating for Hub Group.
In another report released today, Deutsche Bank also upgraded the stock to a Buy with a $41.00 price target.