Wang & Lee Group board approves 250-to-1 reverse share split
On Wednesday, UBS analyst Thomas Wadewitz revised the price target for J.B. Hunt Transport Services (NASDAQ:JBHT) to $155.00, marking a decrease from the previous target of $196.00. With the stock currently trading at $123.57, significantly below its 52-week high of $200.40, Wadewitz continues to endorse the stock with a Buy rating. According to InvestingPro data, analyst targets for JBHT range from $133 to $200, suggesting potential upside from current levels.
Wadewitz’s decision to adjust the price target is based on a new earnings per share (EPS) estimate for 2025, which has been lowered from $6.20 to $5.45 per share. This new forecast takes into account an expected decline in intermodal volumes by 3% year-over-year and a predicted margin deterioration of approximately 60 basis points for the full year in the intermodal segment. The revised EPS estimate falls below the current consensus of $6.01 per share. InvestingPro analysis reveals that 14 analysts have recently revised their earnings downwards for the upcoming period, reflecting broader market concerns.
The adjustment in the price target and EPS estimates by UBS reflects a cautious outlook on J.B. Hunt’s intermodal volumes. Wadewitz notes that the previous estimates were based on the anticipation of a significant cyclical increase in 2026. However, the updated view predicts a more subdued scenario with intermodal volume growth at 1.4% and revenue per load growth at 2.8% for 2026.
Consequently, the EPS estimate for 2026 has also been modified, now standing at $6.45 per share compared to the prior forecast of $8.15 per share. This represents a significant shift in expectations for J.B. Hunt’s performance in the coming year.
Despite these downward revisions, UBS maintains a positive outlook on J.B. Hunt shares with a continued Buy rating. The new price target of $155 reflects the firm’s adjusted projections for the company’s future earnings and operational performance. InvestingPro analysis indicates that JBHT is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of over 1,400 US stocks.
In other recent news, J.B. Hunt Transport Services reported its first-quarter 2025 earnings, with an earnings per share (EPS) of $1.17, aligning with consensus forecasts. Revenue slightly exceeded projections at $2.92 billion, showcasing a strong performance in the intermodal segment. Despite these positive results, analysts from several firms have adjusted their price targets for J.B. Hunt. BMO Capital Markets reduced its price target to $175, maintaining an Outperform rating, while Evercore ISI lowered its target to $165, also keeping an Outperform rating. Stifel analysts took a more cautious stance, adjusting their target to $150 and maintaining a Hold rating. Benchmark, however, reiterated a Buy rating with a $175 target, highlighting J.B. Hunt’s diversified business model and potential for long-term EPS growth. The company’s intermodal volumes reached a record high, with an 8% year-over-year increase, although operating income decreased by 8% due to inflationary pressures. J.B. Hunt has also revised its capital expenditure guidance to $500-700 million, reflecting a cautious approach amid uncertain market conditions.
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