UPDATE: Bank of America Downgrades J.B. Hunt Transport Service to Neutral

Bank of America downgraded J.B. Hunt Transport Service

from Buy to Neutral and lowered its price target from $61 to $60. Bank of America noted, “We are downgrading JBHT's shares to Neutral from Buy as the stock is within 4% of our prior price objective of $61 and 2Q12 intermodal volumes were slightly below target (12.6% vs. our 14.5% target), which may remove some of its premium valuation (JBHT currently trades at 22x and 18.5x our 2012 and 2013 EPS estimates, respectively), placing it near the top end of its 15-year historical trading range of 13x- 22x. While intermodal volumes decelerated to 12.6% from 16% in 1Q12, management noted that June comps were unusually strong last year, leading to the deceleration at the end of the quarter.” J.B. Hunt Transport Service closed at $58.33 on Monday.