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Investing.com - BofA Securities has raised its price target on J.B. Hunt Transport Services (NASDAQ:JBHT) to $171.00 from $166.00 while maintaining a Buy rating on the stock. The new target sits near the high end of analyst estimates, which range from $125 to $175, according to InvestingPro data.
The firm notes that J.B. Hunt experienced solid intermodal volume growth in April and May, though this momentum appeared to soften in June. The slowdown is attributed to pressure on transcontinental volumes amid tariffs on China. Despite recent challenges, the company maintains strong fundamentals with a healthy EBITDA of $1.57 billion over the last twelve months.
Despite the June softening, BofA Securities highlights that J.B. Hunt continues to see material growth in the East, where strong rail service supports truck-to-rail conversion. The company previously indicated it expects overall intermodal pricing to be flat to slightly up year-over-year.
BofA Securities anticipates second-quarter 2025 intermodal loads will increase 2% year-over-year, moderating from the 7.3% growth seen in the first quarter. The firm projects intermodal revenue per load will decrease 2.0% year-over-year and decline 2% from first quarter to second quarter.
The firm’s second-quarter 2025 intermodal operating ratio estimate remains unchanged at 93.4%, representing a 50 basis point deterioration year-over-year but a 20 basis point improvement from the first quarter to the second quarter. For deeper insights into J.B. Hunt’s financial health and performance metrics, including exclusive ProTips and comprehensive analysis, visit InvestingPro, where you’ll find detailed research reports and expert commentary.
In other recent news, J.B. Hunt Transport Services reported its first-quarter earnings, with an earnings per share (EPS) of $1.17, which matched FactSet’s projection and slightly surpassed Benchmark’s expectation of $1.15. Despite a challenging economic outlook, the company’s performance exceeded initial concerns, with a 7.6% year-over-year increase in intermodal load growth, particularly in the eastern regions. Meanwhile, Benchmark analysts adjusted their price target for J.B. Hunt to $165 from $175 but maintained a Buy rating, reflecting confidence in the company’s long-term earnings growth despite current market volatility. In a separate development, Goldman Sachs downgraded J.B. Hunt’s stock from Buy to Neutral, maintaining a price target of $164, due to potential risks such as global recession and competitive pressures.
Additionally, Raymond (NSE:RYMD) James reaffirmed an Outperform rating with a $155 price target, highlighting J.B. Hunt’s strategic focus on return on invested capital (ROIC) and its shift in executive compensation plans. The company’s shareholders recently re-elected all nine directors and approved executive compensation at its Annual Meeting. Furthermore, J.B. Hunt declared a regular quarterly dividend of $0.44 per share, reinforcing its commitment to providing returns to shareholders. These developments reflect J.B. Hunt’s ongoing strategic initiatives and the mixed analyst outlooks on its future performance.
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