PiperJaffray Reports on Hub Group

PiperJaffray commented on Hub Group HUBG in a report released today. In the report, PiperJaffray was positive in its assessment of the company. PiperJaffray writes, "HUBG's stock has been knocked off its 52 week high on general macro fears and is now trading at a 5.6% discount to our target valuation. Yet near term HUBG likely sees volume growth acceleration on Intermodal container additions starting in 2Q11 with strong fundamental tailwinds aided by continued Truckload to intermodal conversions. Add to this our further conviction in HUBG's ability to unlock material value in its most recent acquisition of agent based brokerage provider Mode likely above management's conservative guidance (mainly cost synergies). Finally, Light Asset based HUBG is likely entering a two year period of strong earnings growth and its valuation multiple holding/expanding versus Asset Based Transport multiples compressing mid cycle." PiperJaffray currently has an Overweight rating on Hub Group. Shares of HUBG closed at $37.61 on Thursday, up from $36.56 at the opening bell.