Benchmark maintains Buy rating on Hub Group stock, citing merger benefits

Investing.com - Benchmark maintained its Buy rating and $40.00 price target on Hub Group (NASDAQ:HUBG), currently trading at $34.41, following the company’s second quarter conference call. According to InvestingPro data, analyst targets range from $35 to $47, suggesting potential upside from current levels.

The research firm highlighted Hub Group’s positive outlook on the proposed Union Pacific (NYSE:UNP) and Norfolk Southern (NYSE:NSC) merger, as these railroads are Hub Group’s exclusive rail partners in the United States.

Benchmark believes the merger presents several catalysts that could drive significant intermodal conversion from over-the-road shipping, positioning Hub Group as the best-situated intermodal marketing company to benefit if the merger receives approval.

For the second quarter, Hub Group reported revenue slightly below Benchmark’s estimates, while adjusted earnings per share of $0.45 exceeded expectations by $0.02.

The company lowered the midpoint of its fiscal year 2025 EPS guidance, though Benchmark noted the new guidance aligns with its current estimates, prompting only minor adjustments to its financial projections. With a FAIR overall financial health score from InvestingPro, which offers comprehensive analysis and additional insights through its Pro Research Report, the company maintains stable fundamentals despite near-term challenges.

In other recent news, Hub Group Inc. reported its second-quarter 2025 earnings, showing a slight beat on earnings per share (EPS) expectations but a miss on revenue forecasts. The company posted an EPS of $0.45, which was higher than the anticipated $0.44. However, revenue came in at $905.6 million, which was below the forecasted $918.11 million. These results reflect a mixed performance for the quarter. Analysts from various firms have been closely monitoring these developments. While there were no specific analyst upgrades or downgrades mentioned, the earnings figures are crucial for investors evaluating the company’s financial health. These recent developments are significant for stakeholders keeping an eye on Hub Group’s market performance.

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