Overweight Rating for Hub Group (HUBG)

Matthew S. Brooklier and Reena E. Krishnan, analysts at Piper Jaffray, have kept an Overweight rating for Hub Group HUBG, an asset-light freight transportation management company. The target price is at $38.00 and the stock has been trading at $32.00. The positive outlook comes mainly after impressive performance in second quarter of 2010. The earnings per share grew at 16% compared to the quarter a year earlier to $0.26, which is in line with analysts’ estimates. The gross revenue grew by 26% riding on a 25% increase in sales volume. Risks from exposure to rail service and limited transport options could add downward pressure.