UPDATE: Bank of America Downgrades J.B. Hunt Transport Services to Neutral, Lowers PT as BNSF Service Issues will Constrain Growth

In a report published Thursday, Bank of America analyst Ken Hoexter downgraded the rating on J.B. Hunt Transport Services JBHT from Buy to Neutral, and lowered the price target from $85.00 to $78.00. In the report, Bank of America noted, “JBHT remains one of the premier transport providers in the US. It has reduced its exposure to the volatile over the road business (to 1,850 trucks from more than 5,200 in Mar. 2007) while growing its Intermodal focus (>62% of revs), which provides a near 30% ROIC, and continues to grow. Alternatively, valuation is at the top end of its historical 18x-22x forward trading range. We believe given BNSF's service issues, shares will take a breather until growth can return.” J.B. Hunt Transport Services closed on Wednesday at $70.99.