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Investing.com - BMO Capital has reiterated an Outperform rating on J.B. Hunt Transport Services (NASDAQ:JBHT) with a price target of $172.00. According to InvestingPro data, the stock is currently trading below its Fair Value, with analyst targets ranging from $125 to $180.
The firm cited J.B. Hunt’s newly announced $100 million cost savings plan as a factor that "derisk[s] forward earnings" for the transportation company.
BMO expressed confidence that J.B. Hunt’s earnings will exceed $10 per share in the next mid-cycle, supporting its constructive thesis on the stock.
The research note highlighted stronger cost performance in Q2/F25 and improved visibility into a positive inflection in the company’s Intermodal and Dedicated segment results expected in the second half of 2025 and into 2026.
BMO also noted that J.B. Hunt conducted record share buybacks in the first half of 2025, which the firm described as evidence of "disciplined capital allocation."
In other recent news, J.B. Hunt Transport Services reported its second-quarter earnings per share of $1.31, aligning with analyst expectations and slightly surpassing the FactSet consensus. The company’s revenue reached $2.93 billion, exceeding projections by $10 million, although it remained flat year-over-year. Operating income declined by 4% due to inflationary pressures, but the company managed to generate over $225 million in free cash flow. Analysts from Benchmark reiterated a Buy rating with a price target of $165, while Truist Securities raised its price target to $145, citing cost savings initiatives and early signs of margin stabilization. However, Stifel lowered its price target to $145, maintaining a Hold rating due to ongoing challenges in several business segments. J.B. Hunt’s Intermodal segment showed a 6% volume growth year-over-year, despite a decrease in revenue per load. The company is expected to improve profitability in its Integrated Capacity Solutions segment by 2025 as non-recurring costs related to a previous acquisition phase out. Meanwhile, the company continues to focus on cost reduction strategies to enhance margins across its operations.
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