Hub Group stock price target raised to $40 from $38 at BMO Capital

Investing.com - BMO Capital has raised its price target on Hub Group (NASDAQ:HUBG) to $40.00 from $38.00 while maintaining a Market Perform rating on the stock. Trading at $35.90, Hub Group is currently slightly undervalued according to InvestingPro Fair Value estimates, with a market capitalization of $2.19 billion.

The price target adjustment follows Hub Group’s third-quarter 2025 results, which BMO Capital noted were "broadly in line with expectations." Despite the higher price target, the firm kept its neutral stance on the transportation management company. This aligns with the current analyst consensus recommendation of 2.24 (leaning toward Buy), with analyst price targets ranging from $36 to $44.

Hub Group slightly lowered its guidance at the mid-point, reflecting what BMO described as a "persistently muted freight backdrop" in the current market environment. This comes as the company faces revenue challenges, with a 5.79% decline in the last twelve months to $3.73 billion.

BMO Capital highlighted potential medium to long-term growth opportunities for Hub Group’s intermodal business, supported by planned rail consolidation and increased industry focus on highway conversion to rail transport.

The firm also noted it is monitoring regulatory changes affecting truck drivers that could reduce truck supply in 2026, potentially benefiting leading intermodal providers like Hub Group.

In other recent news, Hub Group Inc. reported its third-quarter 2025 earnings, with an earnings per share (EPS) of $0.49, aligning with analyst expectations. The company achieved revenue of $934 million, exceeding the forecasted $923.77 million. These financial results indicate a stable performance for the quarter. Analysts had anticipated these earnings figures, and the results confirmed their projections. While the stock price movement is not discussed, the earnings and revenue figures provide a clear picture of the company’s recent financial health. These developments are part of Hub Group’s ongoing financial reporting and market activities. The earnings announcement reflects recent progress and stability in the company’s operations.

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