Jefferies Reiterates Buy Rating On JBHT

Jefferies is reiterating its Buy rating on shares of JB Hunt Transport Services JBHT. “While JBHT has outperformed the group by roughly 7% YTD, the strongest performers in transports so far this year have generally been short-cycle, asset-intensive models that can capitalize a strong pricing environment,” Jefferies writes. “Into a potentially rising interest rate and inflationary environment, however, we believe that JBHT's variable cost model, combined with continued top-line growth due to its leverage to domestic intermodal (arguably, the best sustainable volume growth story in domestic transportation), will increasingly come into investors' favor.” JB Hunt Transport Services closed Wednesday at $44.60.