UPDATE: Credit Suisse Starts J.B. Hunt Transport Services (JBHT) at Neutral

(Updated - June 27, 2022 4:23 PM EDT)

Credit Suisse analyst Ariel Rosa initiates coverage on J.B. Hunt Transport Services (NASDAQ: JBHT) with a Neutral rating and a price target of $178.00.

The analyst comments "We initiate coverage of J.B. Hunt with a Neutral rating and a $178 target price. JBHT is one of the largest diversified transportation companies in North America. It is the largest intermodal marketing company and the second largest truckload carrier in the U.S., with a focus on dedicated truckload services. It has the 10 th largest freight brokerage business in the U.S. and operates a last-mile delivery service focused on home delivery of heavy goods. Shares have declined just over 20% year to date and now trade below the low-end of its long-term one-standard deviation P/E range of 18.5-23.5x forward earnings. JBHT trades at a significant premium to many of its peers, primarily due to its larger size, its high quality intermodal business including its unique relationship with BNSF, and its strong track record of compound earnings growth supporting share price appreciation. We believe that the current price represents a reasonable entry point for long-term holders given the quality of its business. However, with many peers trading at sizeable discounts to JBHT, we see greater upside potential in other areas of our coverage, thus driving our Neutral rating. As KNX and SNDR transfer their western intermodal partner to UNP from BNSF, it could create opportunity for JBHT to grow its business with BNSF. Alternatively, it is equally likely to drive increased competition for western intermodal traffic. We remain concerned that its valuation spread to peers is too large as competitors increasingly seek to diversify their own business to resemble JBHT."

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

Shares of J.B. Hunt Transport Services closed at $162.15 yesterday.

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