Wells Fargo Resumes Coverage of J.B. Hunt With Outperform Rating

J.B. Hunt Transport Services, Inc. JBHT coverage was resumed on Wednesday by Wells Fargo Securities with an Outperform rating and a Valuation Range of $86 to $88.

The Wells Fargo report suggested that J.B Hunt recent underperformance was “related to rail service issues stemming from the winter.”   The report mentioned that the company will “leverage its industry-leading position in intermodal to regain share of freight that temporarily diverted to truckload in H1 2014.”

The report also concluded that other pressures are likely to subside due to investments in rail.  J.B. Hunt is also “mode indifferent” allowing it to provide comprehensive transportation services with optimal solutions for customers.

The Wells Fargo Valuation Range is based on a 2015 estimated EPS multiple of 22.5-23.0x.

J.B. Hunt Transport Services, Inc. traded at $73.78 midday on Wednesday.