J.B. Hunt Transport Shares Gain 2% On Upgrades, Q2 Revenue Beat

J.B. Hunt Transport Services JBHT shares rose more than two percent Wednesday after the company beat second-quarter revenue expectations by a whisker and was upgraded by Credit Suisse and Sanford Bernstein.

Both firms now rate the trucking company at Outperform, up from Neutral and Market Perform, respectively.

Allison M. Landry of Credit Suisse thinks the stock is "at an inflection point" with a spate of bad news "now in the rear-view mirror." She forecast accelerating earnings growth from seven percent in the current quarter to 22 percent in 2015.

Landry boosted her target price to $86, from $78, and raised her fiscal 2014 earnings estimate to $3.17 per share, from $3.15. For 2015, she now predicts $3.87, up from $3.78.

Wall Street on average has a $83.65 target and expects 2014 earnings of $3.14 per share, with 2015 at $3.80 per share.

The company on Tuesday posted profit gains of seven percent from a year earlier, on double-digit revenue growth that topped estimates by 1.3 percent.

J.B. Hunt cited a worsening driver supply for lowering its 2014 operating income growth forecast to eight percent to 11 percent, from 11 percent to 15 percent previously. It continues to see revenue growth of 10 to 12 percent.

J.B. Hunt traded recently at $78.13 per share, up 1.55 percent.