Gold rally may be losing steam but no major correction seen: DB
Investing.com - Bernstein SocGen Group raised its price target on J.B. Hunt Transport Services (NASDAQ:JBHT) to $158.00 from $148.00 while maintaining a Market Perform rating. The stock, currently trading at $146.55, appears slightly undervalued according to InvestingPro analysis, though 10 analysts have recently revised their earnings expectations downward for the upcoming period.
The firm noted that fundamentals remain weak for the transportation company, with contract truck rates described as "moribund" due to a prolonged freight recession and resilient supply in the market. This weakness is reflected in J.B. Hunt’s recent performance, with revenue declining 2.24% over the last twelve months. Despite recent encouraging signs in spot rates and more stringent CDL standards creating supply pressure, Bernstein believes it’s too early to identify a firm market turnaround. For deeper insights into J.B. Hunt’s financial health and future prospects, InvestingPro subscribers have access to over 30 additional financial metrics and expert analysis.
Domestic intermodal volumes have been flat recently on tougher comparisons, according to the research note. The firm pointed out that the market appears sensitive to positive truck rate data, as evidenced by a 4-5% price action, noting that rates are a key driver of J.B. Hunt’s top-line performance.
Bernstein highlighted potential impacts from transcontinental merger activity in the rail sector as a key focus area. The firm outlined both bull and bear case scenarios, with the bull case suggesting intermodal growth and sector benefits from these mergers, while the bear case warns of potential transition costs and impacts to J.B. Hunt’s service advantage.
The research note specifically mentioned that J.B. Hunt will eventually need to address realignment of its rail service partners, which currently include BNSF Railway for western operations and a mix of Norfolk Southern and CSX for eastern operations. Despite market challenges, J.B. Hunt maintains a FAIR financial health score according to InvestingPro analysis, with a moderate debt level and a 22-year track record of consistent dividend payments. The company’s next earnings report is scheduled for October 15, just 6 days away.
In other recent news, J.B. Hunt Transport Services has made several notable announcements and adjustments. The company declared a regular quarterly dividend of $0.44 per share, set to be paid on August 22, 2025, to stockholders of record as of August 8, 2025. In leadership changes, J.B. Hunt appointed Brad Delco as Chief Financial Officer and Executive Vice President of Finance, effective September 1. Analyst firms have also been active in revising their outlooks on J.B. Hunt. Benchmark maintained a Buy rating with a price target of $165.00, despite slightly lowering its earnings estimates. Meanwhile, Stifel adjusted its price target to $140.00 from $145.00, citing concerns about volume growth and macroeconomic demand. UBS downgraded the stock from Buy to Neutral, raising its price target slightly to $157.00 due to concerns about the soft freight market environment. These developments reflect a mixed sentiment among analysts regarding the company’s future performance.
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