J.P. Morgan Raises Price Target On HUBG to $46

J.P. Morgan has raised its price target from $40 to $46 and maintains its Overweight rating on Hub Group Inc. HUBG based upon the recent acquisition of Exel Transportation Services (ETS, renamed as Mode Transportation). Says J.P. Morgan of the acquisition, “[it] is likely to provide room for additional earnings growth through margin expansion and operational efficiencies” and additionally, “The poor financial performance of Mode provides HUBG with meaningful room for improvement. Cost synergies, margin expansion, and solid intermodal industry fundamentals support solid earnings momentum over the next few years.” HUBG closed yesterday at $38.63.