JP Morgan Reiterates HUBG Overweight Rating

JP Morgan has issued a report maintaining an Overweight Rating on Hub Group HUBG. JP Morgan writes, “HUBG announced upside 1Q earnings of $0.31/share after the close on Tuesday, ex-acquisition costs related to Mode of ~$0.03/ share. We believe the commentary on intermodal pricing in 2011 is constructive and our sense is that HUBG is positioned to realize strong intermodal volume growth. Margins may experience some near term volatility in the truck brokerage and logistics segments in addition to the integration of Mode Transportation in 2Q:11, but we believe that HUBG is likely to maintain strong earnings momentum in 2011 and 2012.” HUBG has a $46 Price Target and closed at $37.53 a share yesterday.