J.B. Hunt stock price target raised to $168 from $155 at Evercore ISI

Published 16/10/2025, 11:52
J.B. Hunt stock price target raised to $168 from $155 at Evercore ISI

Investing.com - Evercore ISI raised its price target on J.B. Hunt Transport Services (NASDAQ:JBHT) to $168.00 from $155.00 on Thursday, while maintaining an Outperform rating on the stock. According to InvestingPro analysis, the company appears undervalued at current levels, with analyst targets ranging from $133 to $186.

The price target increase follows J.B. Hunt’s third-quarter earnings report, which showed earnings per share of $1.76, significantly exceeding Evercore’s forecast of $1.41 and the average Street estimate of $1.46. The outperformance was primarily driven by sequential margin improvement across most segments, with the company maintaining a healthy 18.8% gross profit margin over the last twelve months. InvestingPro data reveals the company has been consistently profitable, though 11 analysts have recently revised their earnings expectations downward.

Evercore noted that J.B. Hunt’s new cost-to-serve initiative unlocked nearly $20 million in productivity gains during the quarter, part of an eventual $100 million in structural cost savings. The firm described these initiatives as "a game-changer" for the company, enabling margin improvement despite continued soft freight volumes.

Revenue improvements were also seen in some segments, with Intermodal and ICS revenue per load increasing 2.8% and 3.8% respectively from the second quarter of 2025. However, Evercore cautioned that volumes remained soft and actually weakened as the third quarter progressed.

Based on these results, Evercore raised its fourth-quarter 2025 earnings estimate to $1.87 from $1.55 and its 2026 estimate to $7.80 from $7.06, while noting these projections don’t assume much cyclical improvement in the intermodal or trucking markets. The company has demonstrated strong financial discipline, maintaining dividend payments for 22 consecutive years with 11 years of consecutive increases, showcasing its commitment to shareholder returns despite market cycles. Get deeper insights into J.B. Hunt’s financial health and growth prospects with a comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, J.B. Hunt Transport Services reported impressive third-quarter 2025 earnings, with earnings per share (EPS) reaching $1.76, surpassing analyst expectations of $1.46. This strong performance was attributed to the company’s effective cost-saving measures, which resulted in an 18% improvement in diluted EPS. Despite flat revenue, J.B. Hunt realized $20 million in cost savings during the quarter, contributing to its goal of $100 million in total savings. Analyst firms have responded positively to these developments. BMO Capital raised its price target for J.B. Hunt to $180, maintaining an Outperform rating, citing the company’s strong execution in achieving cost savings. Similarly, Stifel increased its price target to $147 from $140 while maintaining a Hold rating. These recent developments highlight J.B. Hunt’s strategic focus on cost efficiency and its ability to exceed earnings expectations.

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