Evercore ISI cuts JBHT stock target to $165, keeps Outperform

On Wednesday, Evercore ISI analyst Jonathan Chappell adjusted the price target for J.B. Hunt Transport Services (NASDAQ:JBHT) to $165, down from the previous $165 while maintaining an Outperform rating on the stock. The revision follows J.B. Hunt’s first-quarter 2025 earnings per share (EPS) of $1.17, which narrowly surpassed the average Street forecast of $1.15 but fell one cent short of Evercore ISI’s estimate. According to InvestingPro data, the stock is currently trading near its 52-week low at $135.11, having declined over 20% year-to-date, suggesting potential value opportunity based on its Fair Value analysis.

J.B. Hunt’s total earnings before interest and taxes (EBIT) declined by 20% sequentially, aligning with the lower end of the 20-25% seasonal decline anticipated by the company’s management in January. This decrease was attributed to a slight outperformance in Intermodal EBIT, while the Final Mile segment significantly underperformed expectations. Despite the downturn experienced by most peers over the past three years, J.B. Hunt’s market outlook has remained relatively stable, although recent heightened uncertainty may impact pricing and margin improvement throughout the year. In addition, ongoing cost inflation continues to undermine the company’s extensive structural expense reductions, which have included a reduction of over 2,000 employees. InvestingPro analysis reveals the company maintains a moderate debt level with a debt-to-equity ratio of 0.45, while operating with a gross profit margin of 18.9%.Want deeper insights? Get access to over 10 additional exclusive ProTips and comprehensive financial metrics with InvestingPro’s detailed research report on J.B. Hunt.

Chappell noted that seasonal factors should lead to an improvement from what is expected to be the lowest point of the cycle in the first quarter of 2025. Nevertheless, a full cyclical EPS recovery is likely to be more gradual than previously anticipated, pending greater shipper confidence in consumer behavior and the broader economy. Despite these challenges, J.B. Hunt’s balance sheet and cash flow generation remain strong, with the company having repurchased $234 million of stock in the first quarter, far exceeding Evercore ISI’s $50 million estimate.

In light of the tempered margin improvement trajectory, Evercore ISI has also revised its full-year EPS forecasts for J.B. Hunt to $5.76 for 2025 and $7.48 for 2026, down from $6.03 and $7.77, respectively. While the firm’s rating for J.B. Hunt remains at Outperform, Chappell acknowledged that identifying near-term catalysts is challenging amid broader market headwinds and macroeconomic uncertainty.

In other recent news, J.B. Hunt Transport Services reported its first-quarter 2025 earnings, with earnings per share (EPS) of $1.17, aligning with analyst expectations. The company’s revenue slightly surpassed projections, coming in at $2.92 billion compared to the anticipated $2.91 billion. Despite these results, J.B. Hunt faces a challenging market environment, as indicated by a decrease in operating income by 8% due to inflationary pressures. Stifel analysts have adjusted their outlook on J.B. Hunt, lowering the stock price target from $158 to $150 while maintaining a Hold rating, citing concerns over demand and potential downside risks.

The company has reported record intermodal volumes, with an 8% year-over-year increase, but faces ongoing challenges in its Dedicated fleet and Integrated Capacity Solutions segment. J.B. Hunt’s management has revised its capital expenditure guidance down to $500-700 million, reflecting a cautious approach amid uncertain market conditions. The company remains focused on margin repair and cost management, with plans to return to net fleet growth in 2025. J.B. Hunt’s leadership emphasizes operational excellence and service performance, aiming to leverage strategic investments for future growth.

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