Sterne Agee Raises The PT On JB Hunt Transport To $49

Sterne Agee is revisiting its assumptions for JB Hunt Transport JBHT in the wake of its view on intermodal demand and pricing, to put it more on par with its views on other intermodal and dedicated fleet companies. Sterne Agee is assuming a more beneficial pricing environment beginning in 2H11, and raising its EPS estimates and price objectives accordingly. Sterne Agee raises its estimated 2011 EPS from $2.05 to $2.07, but 2012 EPS rises from $2.40 to $2.55 to reflect its expectations of a stronger pricing environment to those who own intermodal equipment. Sterne's price target rises from $41 to $49 to reflect the higher EPS estimates and smaller discount to its midcycle 2012 valuations. Sterne Agee has a Buy rating on JBHT JBHT is trading higher at $41.41