J.B. Hunt stock price target lowered to $145 by Stifel on mixed results

Published 16/07/2025, 15:06
J.B. Hunt stock price target lowered to $145 by Stifel on mixed results

Investing.com - Stifel has lowered its price target on J.B. Hunt Transport Services (NASDAQ:JBHT) to $145.00 from $150.00 while maintaining a Hold rating on Wednesday. According to InvestingPro data, the stock currently trades at $150.03, with analyst targets ranging from $125 to $180.

The transportation company reported second-quarter earnings per share of $1.31, slightly above both Stifel’s estimate and consensus expectations of $1.30. The results showed similar patterns to the previous quarter, with J.B. Hunt’s intermodal (JBI) load volumes growing while revenue per load remained under pressure. InvestingPro analysis reveals the company maintains strong profitability with a 18.83% gross margin and has consistently paid dividends for 22 consecutive years.

Several business segments continued to face challenges, including the company’s truckload division (JBT) which saw pressure on revenue per load, ongoing difficulties in the Final Mile business, and constraints on Dedicated Contract Services (DCS) truck count growth.

Despite these headwinds, J.B. Hunt managed to narrow its year-over-year decline in operating income compared to the previous quarter through productivity and cost initiatives, though inflationary pressures continue to impact operations.

Stifel noted that despite trade policy volatility during the second quarter of 2025, the company’s operations appear stable, with analysts expressing potential interest in the stock should it reach "the $130s" price range.

In other recent news, J.B. Hunt Transport Services Inc. reported its second-quarter 2025 earnings, which aligned with analyst expectations. The company’s earnings per share (EPS) were $1.31, matching forecasts, while revenue slightly exceeded predictions at $2.93 billion. Despite meeting these expectations, the company faced challenges with a 4% decrease in operating income due to inflationary pressures. In response to these conditions, J.B. Hunt has identified $100 million in annual cost reductions across various areas, including efficiency and asset utilization, to improve its financial performance. The company also announced plans for capital expenditures between $550 million and $650 million for 2025, focusing on modest fleet growth in its Dedicated segment. Analyst discussions during the earnings call highlighted the company’s efforts to stabilize margins and improve operational efficiency. Additionally, J.B. Hunt’s stock repurchase strategy continued, with a record $319 million of stock repurchased during the second quarter. These developments reflect J.B. Hunt’s ongoing commitment to growth and operational excellence amid challenging market conditions.

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