Credit Suisse Raises Price Target & Estimates on JB Hunt Transport Services (JBHT), Solid Pricing Environment

Credit Suisse maintains a Neutral rating on shares of JB Hunt Transport Services (Nasdaq: JBHT), but raised its price target from $42 to $44 following better-than-expected first-quarter results.

The company reported first-quarter EPS of $0.40 which is $0.02 above the firm's and Street's estimate. The firm notes the beat is a very good sign as the quarter was pressured by bad weather in the beginning and rising fuel prices throughout.

Management indicated the current pricing environment is strong. Credit Suisse said intermodal was up 4% Y/Y base rate and noted pricing gains resulting from the first-quarter bid season should start to materialize in the second quarter. It also mentioned TL rates and ex-fuel were up 9% Y/Y, and rates paid by "consistent" shippers increased 4.0% Y/Y.

Credit Suisse said, "Freight demand in the truck segment was described as "unseasonably strong" in each month during the quarter. This up tick in freight demand is consistent with our Freight Forecaster model. Intermodal volumes were also strong during 1Q11 in both the Eastern network (volumes up 28% y/y) as well as on the Trans-Continental routes (volumes up 10% y/y)."

The firm raised its FY11 EPS estimate from $2.05 to $2.10, its FY12 estimate from $2.38 to $2.42, and its FY13 estimate from $2.61 to $2.70.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• BMO Capital: 'We continue to view JBHT as one of our preferred ideas in Transportation'
• Rubrik Inc (RBRK) PT Raised to $120 at Cantor Fitzgerald Into Q2 Earnings
• Seaport Global Securities Upgrades Analog Devices (ADI) to Buy, 'appears to be entering the sweet part of the cycle'