Analysts Lift JB Hunt Price Target After Q3 Results

Multiple analyst firms raised the price target for JB Hunt Transport Services Inc JBHT, citing better than expected Q3 results.
BMO Capital analyst Fadi Chamoun raised the price target to $180 (implying a downside of 4%) from $165 and maintained a Market Perform rating on the shares.
Chamoun noted that the company's Q3 results were better than expected, underscoring a "solid" execution in spite of the "challenging" environment.
He adds that the company's intermodal profitability improved to a 5-year high, and if supply constraints ease, volume growth should re-accelerate at above-average profitability.
KeyBanc analyst Todd Fowler raised the price target $210 (implying an upside of 11%) from $190 and maintained an Overweight rating.
Fowler also raised estimates to reflect current quarter upside, stronger yields, and higher intermodal margins, partially offset by continuing congestion and labor costs. Results, in his view, demonstrate price initiatives and solid execution despite network challenges, which should lead to margin improvement and volume growth as congestion eases.
Raymond James analyst Patrick Tyler Brown increased the price target to $200 (implying an upside of 6%) from $185 and maintained an Outperform rating on the shares.
Brown believes in management's ability to manage the current environment and the view that current velocity issues are likely transitory and could set up 2022 for outsized JB Hunt load growth.
Brown continues to believe Intermodal's value proposition is poised to improve as service returns, truck tightness persists, and intermodal's "ESG" benefits are appreciated.
Wells Fargo analyst Allison Poliniak-Cusic raised the price target to $216 (implying an upside of 15%) from $203 and maintained an Overweight rating on the shares.
The analyst views the $1.88 in EPS versus her $1.78 estimate as favorable, showing the importance of strong execution in a challenging freight supply chain environment.
The conference call highlighted the importance of JB Hunt's focus on onboarding long-term profitable business. The analyst believes it highlights its focus on ROIC and the improvement in this metric.
Baird analyst Benjamin Hartford increased JB Hunt Transport's price target to $200 from $188 and maintained an Outperform rating on the shares.
Hartford mentions growth and pricing momentum look sustainable in the near term given supply chain congestion. Longer-term, the company is well-positioned to help customers reduce costs and optimize transportation budgets, which should drive better relative growth in 2022 and beyond.
Cowen analyst Jason Seidl raised the price target to $192 from $169 and maintained a Market Perform rating on the shares.
Seidl says that the intermodal network remains challenged with a decline in volumes which he expects to continue given what we heard on our private trucking call but strong pricing and surcharge revenue more than offset this.
Argus analyst John Eade raised the price target to $210 from $185 and maintained a Buy rating on the shares after its Q3 earnings beat.
Eade is positive on JB Hunt's industry position, as companies will increasingly focus on their domestic supply chains as the economy recovers from the pandemic.
Eade further states that JB Hunt has a strong balance sheet and its stock trades at the midpoint of its historical price-to-earnings range.
Price Action: JBHT shares are trading lower by 1.21% at $188.23 on the last check Monday.

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