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KeyBanc Downgrades Hub Group (HUBG) to Hold Following Preannouncement

March 24, 2009 11:00 AM EDT
HUBG Hot Sheet
Rating Summary:
    5 Buy, 4 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
KeyBanc downgrades Hub Group, Inc. (Nasdaq: HUBG) from Buy to Hold.

KeyBanc analyst says, "We are downgrading our rating on shares of Hub Group to Hold based on the Company's updated 1Q09 guidance of $0.15-$0.20 (our estimate is $0.18, down from $0.25 previously; consensus previously $0.28), what we view as fair valuation (16.5x our new 2009E of $1.10, down from $1.40), and lack of meaningful near-term catalysts. While we maintain a positive bias on shares given the Company's strong financial position (over $2 per share net cash), asset-light model and management's operational focus, we would prefer some semblance of improving freight demand or emergence of a catalyst (i.e., acquisitions) before becoming constructive...However, we maintain a positive bias given HUBG's strong financial position (over $2 per share net cash), asset-light model and management's operational focus. That said, would prefer some semblance of improving demand trends or emergence of a catalyst (i.e., acquisitions) before becoming constructive."

To see more analyst ratings on HUBG Click Here.

Hub Group, Inc. is an asset-light freight transportation management companies. The Company offers intermodal, truck brokerage and logistics services.

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