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On Wednesday, BMO Capital Markets adjusted its outlook on J.B. Hunt Transport Services (NASDAQ:JBHT), reducing the price target to $175 from the previous $200 while sustaining an Outperform rating on the company’s shares. The revision follows J.B. Hunt’s first-quarter results for 2025, which were modestly above expectations, bolstered by particularly strong performance in the intermodal segment. The stock currently trades at $124.76, having declined about 25% over the past year, according to InvestingPro data.
The analyst at BMO Capital highlighted that while there are still several large bids pending, the sentiment regarding the results from the ongoing bid season was one of cautious optimism. The company’s Q1/25 earnings beat forecasts, suggesting a positive trend in its business operations. InvestingPro data shows that despite recent challenges, J.B. Hunt maintains strong fundamentals with a healthy EBITDA of $1.58 billion and has consistently maintained dividend payments for 22 consecutive years.
Despite the upbeat tone on bid season outcomes, BMO Capital has revised its earnings estimates downwards by 5.0% for 2025 and 4.2% for 2026. This adjustment reflects the heightened macroeconomic uncertainty and the potential for downside risks to intermodal volumes, which could be affected by changes in trade policies.
The new price target of $175 takes into account these risks and uncertainties but still implies confidence in the company’s ability to perform well, as evidenced by the maintained Outperform rating. The analyst’s comments suggest that while there are challenges ahead, the overall outlook for J.B. Hunt remains positive.
In summary, BMO Capital’s updated analysis of J.B. Hunt Transport Services acknowledges the company’s solid Q1/25 results, especially in the intermodal segment. However, it also takes a prudent stance by adjusting the price target to reflect possible risks in the external environment, while still endorsing the stock’s potential with an Outperform rating.
In other recent news, J.B. Hunt Transport Services reported its first-quarter 2025 earnings, achieving an earnings per share (EPS) of $1.17, which matched analyst expectations. The company’s revenue slightly surpassed projections, reaching $2.92 billion. Despite these results, analysts have adjusted their price targets for J.B. Hunt. Benchmark analysts reiterated a Buy rating with a $175 price target, while Evercore ISI reduced their target to $165, maintaining an Outperform rating. Stifel also lowered its target to $150, keeping a Hold rating.
The company’s intermodal segment showed strong volume growth, with an 8% year-over-year increase, although operating income decreased by 8% due to inflationary pressures. The Eastern region demonstrated particularly strong performance, contributing to this growth. However, J.B. Hunt faces challenges in its Final Mile and Dedicated fleet segments, with ongoing losses and a more significant contraction than anticipated. Analysts have revised their full-year EPS forecasts for 2025 and 2026, reflecting tempered margin improvement expectations.
Despite these challenges, J.B. Hunt’s balance sheet remains robust, with significant stock repurchases in the first quarter. The company continues to focus on cost management and operational excellence, aiming to leverage its diversified business model for future growth.
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