Dahlman Rose Reiterates Buy Rating on J.B. Hunt (JBHT)

Dahlman Rose is out with a research report this morning, where it reiterates its Buy rating on J.B. Hunt Transportation Services JBHT; it has an $47.00 price target on the stock. The DR analysts cited the company's recent earnings announcement, which was generally better than expected. The beat was primarily attributable to better-than-expected intermodal margins and a lower-than-expected tax rate. Revenue grew 16% year over year. As for valuation, the analysts remarked, “Sierra shares are currently trading at 0.9 times TBV/share, an understandable discount to the median of 1.3 times for Western peers. Our $11 price target is 1.0 times our 2011 TBV/share estimate, which we believe is a fair valuation versus peers given the elevated credit challenges facing the company.”