KeyBanc Upgrades Hub Group (HUBG) to Buy

June 3, 2009 8:58 AM EDT

KeyBanc upgrades Hub Group (Nasdaq: HUBG) to Buy. Price target $28.

KeyBanc analyst says, "...In our view, the Company's expanded relationship with Union Pacific (NYSE: UNP) has two potential favorable outcomes, including: 1) reduced purchase transportation costs; and/or 2) share gains from operational/contractual issues related to Pacer International, Inc. (NASDAQ: PACR). Coupled with a solid balance sheet, management's operational focus and valuation, we believe shares represent an attractive risk/reward at current levels. Our $28 price target represents 23x our 2010 estimate of $1.20 and 21x on a cash adjusted basis."

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Hub Group, Inc. is an asset-light freight transportation management companies.


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HUBG 26.77

+0.32 +1.21%
Volume: 194,883
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PACR 2.85

+0.01 +0.35%
Volume: 574,679
Track PACR

UNP 64.33

+1.07 +1.69%
Volume: 3,927,780
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