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KeyBanc Downgrades J.B. Hunt (JBHT) to Hold Following Market Checks, Still Recommends Hub Group (HUBG)

March 2, 2012 9:20 AM EST Send to a Friend
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Price: $75.55 -0.16%

Rating Summary:
    9 Buy, 15 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 3 | Down: 4 | New: 7
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KeyBanc downgraded shares of J.B. Hunt (NASDAQ: JBHT) from its previous rating of Buy to Hold. The firm also terminated its $55 price target on the company.

The firm noted the downgrade follows a number of market checks, which indicated intermodal pricing in early 2012 is more competitive than anticipated and could hurt any chance for earnings upside. KeyBanc also doesn't see any chance for further multiple expansion given there are no major catalysts in the near future.

An analyst at KeyBanc comments, "While incrementally cautious on pricing near term, our checks indicate volumes quarter-to-date are seasonally in line and we continue to view intermodal as an attractive subsector benefiting from modal conversion, tight truck capacity, and rising diesel."

The firm reaffirmed its FY11 and FY12 EPS estimates of $2.13 and $2.50.

Following the market checks, KeyBanc is also reiterating its Buy rating and $40 price target on Hub Group, Inc. (Nasdaq: HUBG) and is maintaining its Hold rating on Pacer International (Nasdaq: PACR).

For an analyst ratings summary and ratings history on J.B. Hunt click here. For more ratings news on J.B. Hunt click here.

Shares of J.B. Hunt closed at $52.09 yesterday.

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