UPDATE: Bank of America Upgrades J.B. Hunt Transport Services to Buy; 3Q Fears Overdone
Bank of America raised its rating on J.B. Hunt Transport Services (NASDAQ: JBHT) from Neutral to Buy with a reiterated $60 price objective.
Bank of America noted, "While this upgrade is valuation generated, as the shares have fallen 14% since mid-June (7% over the past month), it also is driven by the potential for reaccelerating Intermodal volumes in late 2012 as truckload conversions continue and as Norfolk Southern completes its fourth new Intermodal yard this year. JBHT's shares are trading at 17.4x our 2013 EPS estimate, in line with its historical average. We believe that fears about soft 3Q12 trucking and intermodal results and resultant earnings pressure are built into expectations."
J.B. Hunt Transport Services closed at $51.90 on Tuesday.
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