Piper Jaffray Raising PT On Hub Group, Inc.

Piper Jaffray, upon the acquisition by Hub Group, Inc. (NASDAQ: HUBG) of Exel Transportation Services (ETS) has raised its PT on the stock to $46.

In its report, Piper Jaffray writes, “We view the acquisition as largely positive given HUBG is putting formerly idle cash to work grabbing a big chunk of market share. More importantly, we believe HUBG can unlock significant value in ETS given (1) corporate and (2) purchased transportation cost synergies well above mgmt's guidance and not yet discounted into the stock. We've raised our EPS and price target to $46 which only gives HUBG partial credit for the all in cost synergies we believe are attainable.”

An Overweight rating is also reiterated in the report.

HUBG closed yesterday at $38.25.