UPDATE: Dahlman Rose PT to $63 on JB Hunt Transport Services On Dissapointing Revenues
Dahlman Rose reiterated its Buy rating on JB Hunt Transport Servies (NASDAQ: JBHT) but trimmed its price target from $64 to $63 on disappointing revenue numbers for the latest quarter.
Dahlman Rose commented, "JBHT delivered another solid quarter, as segment margin improvement overshadowed modestly disappointing revenues. However, the revenue miss and somewhat tempered intermodal pricing could put some pressure on the shares. … Despite the largely in-line results, we are modestly trimming our 2012 and 2013 EPS estimates to $2.63 and $3.00 from $2.65 and $3.05, respectively. Our price target drops $1, to $63, which is based on a 21x multiple applied to our 2013E EPS. We maintain our Buy rating on JBHT and note that, in the long term, the secular intermodal growth story remains intact as the railroads pump more money into intermodal investments, and the US government continues to under-invest in highway infrastructure."
JB Hunt Transportation Services closed at $58.33 on Monday.
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