In a report published Tuesday, Wunderlich Securities analyst Nicholas Bender maintained a Hold Rating on J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT), keeping its $76.00.

According to the report, JBHT's switch from a pure truckload carrier to the undisputed leader in domestic intermodal has dampened results at the company's truck segment, JBT. JB Hunt's best-in-class intermodal network and dedicated fleet have had resources invested, much to the detriment of the legacy truckload operations. “With JBT projected to operate at a 98.5% OR in FY13, and contribute just 1% of consolidated EBIT, management has announced its intentions to invest heavily in the business in FY14,” the report noted. “The hope is to initially stabilize JBT operations, and then recapture some of its former glory; in FY05, the segment topped $1 billion in revenue and operated at an 88.4% OR. These efforts could prove to be materially accretive in FY14 and FY15.” Some key points from the review included: -”Renewed focus on JBT boosts long-term outlook.” -”JB Hunt's intermodal segment, JBI, continues to grow at above market rates despite the fact that domestic intermodal traffic growth is slowing.” -”We continue to view a 20x P/E multiple as appropriate for shares of JBHT, and this reinforces our $76 price target based on our new FY15 estimate.” JBHT closed Monday at $77.31.
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Posted In: ReiterationAnalyst RatingsNicholas BenderWunderlich Securities
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