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On Wednesday, TD Cowen analysts revised their outlook on J.B. Hunt Transport Services (NASDAQ:JBHT), decreasing the price target to $140 from $160, while maintaining a Hold rating on the stock. The adjustment follows the company’s latest earnings report, which revealed a modest outperformance due to record intermodal (IM) volumes. The stock currently trades at $124.91, down over 20% year-to-date, reflecting broader market concerns. According to InvestingPro data, 14 analysts have recently revised their earnings expectations downward for the upcoming period.
The report from J.B. Hunt indicated that despite the record volumes, the company is facing challenges. Analysts noted that the pricing power of the company is limited, and the macroeconomic outlook remains uncertain. The recent bid season for intermodal was described as incrementally worse compared to the last quarter, and mix headwinds are expected to further challenge margins. The company’s revenue has declined by 3.82% over the last twelve months, though it maintains a solid gross profit margin of 18.83%.
In response to the current market conditions, J.B. Hunt’s management has decided to reduce capital expenditure plans and focus on cost management. The reasoning behind this move is the absence of a clear freight market inflection point on the horizon. Analysts predict that the pull-forward and tariff impacts are likely to affect volumes in the upcoming quarters.
The revised price target of $140 reflects these concerns and the company’s strategy to navigate through the uncertain macroeconomic landscape. The Hold rating suggests that TD Cowen analysts advise investors to maintain their current position in J.B. Hunt stock until there is more clarity on the company’s performance and market conditions.
In other recent news, J.B. Hunt Transport Services reported first-quarter 2025 earnings per share (EPS) of $1.17, slightly exceeding the consensus estimate and aligning with the company’s previous guidance. UBS revised its price target for J.B. Hunt to $155, maintaining a Buy rating, citing a cautious outlook on intermodal volumes and adjusted EPS estimates for 2025 and 2026. BMO Capital Markets also adjusted its price target to $175 from $200, while keeping an Outperform rating, reflecting macroeconomic uncertainties despite strong first-quarter results. Benchmark analysts reiterated a Buy rating with a $175 target after J.B. Hunt’s earnings met expectations, highlighting robust intermodal growth. Evercore ISI lowered its price target to $165, maintaining an Outperform rating, and noted challenges in pricing and margin improvement due to ongoing cost inflation and market uncertainties. Stifel adjusted its price target to $150 and maintained a Hold rating, expressing caution over demand uncertainties and potential risks in J.B. Hunt’s business model. Despite these varied outlooks, analysts generally acknowledge J.B. Hunt’s strong performance in the first quarter and its solid financial position.
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