UPDATE: Deutsche Bank Downgrades JB Hunt Transport Services to Hold, Reiterates $91 PT as Shares are Closer to Fair Value

In a report published Friday, Deutsche Bank analyst Robert Salmon downgraded the rating on JB Hunt Transport Services JBHT from Buy to Hold, but reiterated the $91.00 price target. In the report, Deutsche Bank noted, “We are downgrading shares of JBHT to Hold (from Buy) as we now just see 8% upside to our unchanged 2015 year-end price target of $91 and see a tougher near-term setup. Although we like JBHT's outsized exposure and bestin-class Intermodal franchise, the company is trading at 23.5x our 2015 EPS estimate of $3.60, in line with peak NTM P/E multiple over the past two years. Fundamentals have also weakened modestly as Intermodal load growth has decelerated to +5.8% y/y in Q4 (vs. +8.2% y/y in Q3) and we see Intermodal margin headwinds in H1 2015. Accordingly, we have moved to the sidelines and are looking for a better entry point. HOLD.” JB Hunt Transport Services closed on Thursday at $84.23.
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Posted In: Analyst ColorDowngradesAnalyst RatingsDeutsche BankRobert Salmon
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